Enterprise Africa June 2016

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

AFRICA

ENTERPRISE ENTERP June 2016

www.enterprise-africa.net

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Multi-Million Rand

Investments

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EDITOR’S LETTER

Joe Forshaw EDITOR joe@enterprise-africa.net Hal Hutchison SALES MANAGER hal@enterprise-africa.net Sophie Bolderstone SENIOR PROJECT MANAGER sophie@enterprise-africa.net Sam Hendricks SENIOR PROJECT MANAGER sam@enterprise-africa.net Shaun Cousins PROJECT MANAGER shaun@enterprise-africa.net Shannon James PROJECT MANAGER shannon@enterprise-africa.net Daniel Scott PROJECT MANAGER daniel@enterprise-africa.net Alex Kane PROJECT MANAGER alex@enterprise-africa.net Jane Larkman ACCOUNTS MANAGER finance@enterprise-africa.net Harvey Tarlton SENIOR DESIGNER harvey@enterprise-africa.net

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Welcome to our latest edition…

There seems to be a lot of ‘doom and gloom’ talk when people mention the state of the South African economy right now. “Growth rates are slow, unemployment remains high, the currency is in turmoil and ratings agencies are uncertain over the future forecast” is what people say.

And while this may be true, the problem seems to effect different companies in different ways and the truth is, almost every one we speak to says that the economic downturn has only had a minimal impact and only becomes a problem when you allow it to become a problem.

Look at our feature companies for this month for example.

Shell continue to open forecourts and forge partnerships, even with the oil price situation. Broll continue to expand into Africa despite currency challenges. Vida e Caffé have a strong growth plan even with increasing costs and competition. Osmond Lange architects are driving ahead with major projects despite slow GDP growth. Tri-Star Construction is filling up its order book where others are falling flat and Carara Agro Processing and EKM Exports are searching for new international markets to receive their world class SA products.

Considering that the state of the economy is regarded by many as being in something of a mess, the type of growth displayed by these industry leaders is inspiring and they all act as the perfect example to follow for their industry peers.

It’s important to find a way to operate effectively when times are tough; as the famous quote says: “Life isn’t about waiting for the storm to pass - it’s about learning to dance in the rain.”

Talk to us online, and tell us your stories of success in these tough times. We’re online @EnterpriseAfri1

Joe Forshaw EDITOR

GET IN TOUCH +44 (0) 20 8123 7859 joe@enterprise-africa.net www.enterprise-africa.net

www.enterprise-africa.net / June 2016 / 3

06/NEWS: The Month that was...

A round up of some of the latest news stories from around the country

08/FEATURE: Enterprise Wine: SA Wine Continues to Rank Among Best in the World One of the country’s most important exports, and also hugely popular with local customers, South African wine is today globally recognised and lauded as some of the best available on the planet.

104/EXHIBITION CALENDAR: Key Upcoming Events Across the Country

22/SANSA: Is Space Weather Affecting Your Business?

The South African National Space Agency continues to monitor the effects of space weather across the continent. Its work is perhaps underappreciated but it is now searching for growth and looking to help integrate space-knowledge with government decision making, for the benefit of SA society.

Our regular update to help you keep track of important events and exhibitions taking place across the spectrum of industry sectors

32/SHELL SOUTH AFRICA: SAPREF Underpins Shell’s Quality Product Portfolio

16/

Shell South Africa has one of the most recognisable and best performing product ranges in the industry. This is thanks to the advances in technology and innovations that take place at world-renowned facilities such as the SAPREF refinery in Durban.

16/EKM EXPORTS: Multi-Million Rand Investments for SA Fruit Exporter With celebrity marketing campaigns, a sparkling new pack house facility and a quality product that is in demand all over the world, right now is a good time for leading SA fruit business, EKM Exports.

38/KAEFER SOUTH AFRICA: KAEFER Has Industry Covered KAEFER’s product and service portfolio offers solutions to company’s operating across a range of industries and, thanks to its global presence and unrelenting drive for quality, the company is now achieving its vision of ‘eliminating the energy waste’.

48/VIDA E CAFFE Charged for Growth Delivering top quality coffee to millions of South Africans since 2001, Vida e Caffé now has a network of more than 180 outlets. With this number set to rise in the future, even with fierce competition entering the market and global coffee prices looking more and more uncertain, Vida has an extremely robust business and is an example to follow for any customer focussed start-up.

4 / June 2016 / www.enterprise-africa.net

CONTENTS

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38/

54/WHITE RIVERS EXPLORATION: “We know how to find world class mineral resources” Headquartered in Johannesburg, with a combined experience of over 200 years in the Wits Basin, White Rivers Exploration is one of the industry leading companies when it comes to exploration and development of quality South African mines.

60/CARARA AGRO PROCESSING: Carara’s Little Red Peppers Driving International Business In the quaint and charming city of Grahamstown, in South Africa’s Eastern Cape, an innovative agricultural business has the taste for success and is looking for sustained growth throughout 2016 and beyond.

66/TRANS-TECH LOGISTICS: The Pioneer in Cross Border Transportation

60/ 80/KIT KAT GROUP: Unparalleled Range for Consumers From its humble beginnings as Kit Kat Café back in 1953, then located in South Africa’s old Asiatic Bazaar, today Kit Kat Cash and Carry spans some 20,000 square meters and comprises three floors, offering goods ranging from groceries and crockery to electrical and sports equipment.

84/BROLL FACILITIES MANAGEMENT: “Africa, We Have You Covered” The challenges of being a facility manager in 2016 are becoming more and more significant but industry leader, Broll (part of the CBRE network) has seen success across South Africa and on the continent.

92/MONTIGNY INVESTMENTS: Timber Giants

Trans-Tech Logistics moves a range of different products, for a range of different industries, all over sub-Saharan Africa. With a large, high-tech fleet, Trans-Tech is now one of the most trusted and respected logistics companies around.

Montigny is the largest privately-owned, integrated timber company in Swaziland. The company owns over 55,000 ha of timber and sells to markets around the world, steadfastly committed to sustainable, profitable and ethical business practices, that benefit the local economy and add value to the Swazi Nation.

72/OSMOND LANGE: Connection by Design

96/NAMPAK: Glass Business Resilient for Nampak

With origins dating back to 1929, South African architects and planners Osmond Lange combines maturity of reputation with 21st century style and a striking understanding of contemporary needs and aspirations.

Africa’s largest diversified packaging manufacturer by volume and revenue, Nampak, has enjoyed a good start to 2016 and is expecting to grow further throughout the rest of the year and beyond.

76/TRI-STAR CONSTRUCTION: ‘A Formidable Force in the Construction Industry’

100/DU ROI: Yielding Better Results

Keeping one eye on the economic situation in South Africa, Tri-Star Construction is enjoying ongoing success, working on impressive projects and developing a quality workforce from within. This is one construction company for which the future looks particularly bright…

Founded in 1994 in Letsitele in Limpopo province, Du Roi Laboratory specialises in the production and distribution of elite selections and disease free tissue culture plants, with a particular focus on the banana and sugarcane industries.

www.enterprise-africa.net / June 2016 / 5

IMPERIAL HOLDINGS IN UK ACQUISITION Imperial Holdings has agreed to purchase UK express-delivery service Palletways Group for £162.9m ($236m) as part of its international expansion.

Palletways delivers small consignments of freight - about eight million pallets a year - across 20 European countries, Imperial said in a statement released last month.

Imperial CEO Mark Lamberti said back in April that he is seeking international expansion of the company’s logistics operations, which range from pharmaceutical delivery to barging on the Rhine. Imperial’s other main business is its vehicle division, which includes importing, dealerships and rental operations in sub-Saharan Africa.

“The acquisition of Palletways is in line with Imperial’s stated strategic intent to expand its presence beyond South Africa through the acquisition of asset light logistics businesses that benefit from Imperial’s existing footprint and capabilities,” the company said.

AB INBEV TAKEOVER OF SABMILLER RECEIVES APPROVAL The SA Competition Commission has recommended that the $106 billion takeover of SABMiller by AnheuserBusch InBev NV should go ahead with conditions including the sale of a stake in local wine, cider and spirits producer Distell Group.

AB InBev must sell SABMiller’s 26% stake in Distell within three

6 / June 2016 / www.enterprise-africa.net

years of closing the deal.

Other conditions put in place by the Competition Commission include protecting jobs and setting up a R1bn ($64m) fund to support local farmers.

The final decision on the takeover now passes to the Competition Tribunal.

The takeover will result in the world’s largest brewer; the home of Budweiser and Stella Artois.

“Access to the internet is the single most powerful tool we have in combating the inequality experienced in the delivery of quality education” Minister Cwele said.

NEWS ROUNDUP SA POST OFFICE LAUNCHES DIGITAL MAIL SERVICE Imperial Holdings has agreed to purchase UK express-delivery service Palletways Group for £162.9m ($236m) as part of its international expansion.

Palletways delivers small consignments of freight - about eight million pallets a year - across 20 European countries, Imperial said in a statement released last month.

Imperial CEO Mark Lamberti said back in April that he is seeking international expansion of the company’s logistics operations, which range from pharmaceutical delivery to barging on the Rhine. Imperial’s other main business is its vehicle division, which includes importing, dealerships and rental operations in sub-Saharan Africa.

“The acquisition of Palletways is in line with Imperial’s stated strategic intent to expand its presence beyond South Africa through the acquisition of asset light logistics businesses that benefit from Imperial’s existing footprint and capabilities,” the company said.

TOYOTA LANCHES NEW MODELS

Last month, President Zuma launched the new generation Toyota Hilux and Fortuner in Prospecton, Durban.

The new Toyota Hilux and Fortuner models are part of Toyota’s injection of R6.1 billion investment into South Africa’s manufacturing industry and the country’s local vehicle production.

The investment by the Japanese car manufacturer is a demonstration of

the continued confidence that global automotive producers have in South Africa as an investment destination and the supportive policy environment that the country offers.

The investment in the production of the new Hilux and Fortuner vehicle models will support more than 4 000 jobs, while total employment in the plant already exceeds 8 000 jobs.

SMALL BUSINESS DRIVING SA ECONOMY

The small business sector is beginning to take its rightful place as the engine of South Africa’s economy, according to Small Business Development Minister Lindiwe Zulu.

This was confirmed by 2016 tax collection success in which SARS broke through the R1 trillion ceiling. The tax authority also reported that more than 18 000 new SMMEs had for the first time submitted tax returns.

Minister Zulu said growth in future revenue is dependent on government and all stakeholders upscaling interventions coupled with sharpened awareness for more people to be involved in entrepreneurship, start-ups, SMMEs and cooperatives.

Last year, the Minister made a commitment to increase the value and

quality of funding for small businesses.

“Sefa, an agency of the department, has since its inception, increased its total approvals to R3.6 billion and disbursed into the economy over R3.2 billion to over 200 thousand small businesses,” the Minister noted.

For the financial year 2015/16 alone, Sefa approved R1.1 billion of loan facilities and disbursed R1.08 billion to 45 263 SMMEs and cooperatives through its various loan distribution channels.

Minister Zulu said 61 youthowned enterprises have been funded to the tune of R17.9 million through the department’s Cooperatives Incentive Scheme, while R35.9 million has gone to 117 women enterprises.

www.enterprise-africa.net / June 2016 / 7

FEATURE

SA WINE CONTINUES TO RANK AMONG BEST IN THE WORLD PRODUCTION: Sam Hendricks, Hal Hutchison & Joe Forshaw

One of the country’s most important exports, and also hugely popular with local customers, South African wine is today globally recognised and lauded as some of the best available on the planet. The producers, big and small, are rich in heritage and tradition and have been making wine of the utmost quality for generations. At Enterprise Africa, there’s nothing we love more than handcrafted produce straight out of Africa so we’ve taken it upon ourselves to review and recommend some of our favourite wines, not based on price or region, but based purely on taste and enjoyment…

BAYEDE! KING SHAKAZULU PINOTAGE 2015 Displaying the name of one of the most respected kings who ever walked on African soil, Shaka Zulu, this wine positions itself as a royal offering with flavours of the highest order. It boasts the royal seal of approval from current Zulu King, Goodwill Zwelithini.

Immediately you’ll get a blackberry, jammy flavour with mulberry spice.

It’s fragrant, with a strong floral forest perfume. The colour is a deep dark red, not purple. The tannins are relatively strong and there is a medium finish.

The Bayede! range was born through persistence from the Van Loveren, Eikendal and Imbuko estates along with former magistrate-turned-consultant, Antoinette Vermooten. Vermooten and the winemakers were passionate about job creation and helped build the brand internationally as well as creating jobs

8 / June 2016 / www.enterprise-africa.net

locally. Each individual bottle is adorned with Zulu beadwork, made by women in rural areas, that hangs around the neck of the bottle.

Tips that certainly improve this offering – open the bottle early, use an aerator to pour and enjoy above room temperature. Pair with meaty casseroles, meaty soups or saucy meat pies.

CREATION SYRAH 2013 Nestled away in the scenic Hemel-en-Aarde Ridge in the desirable region of Walker Bay is the Creation Wine Estate, run

by Jean-Claude and Carolyn Martin since 2002. They call the estate ‘our little piece of paradise’. The 40 hectare site sits in a region where the climate brings neither extreme cold or heat and this means that the innovative couple have been able to experiment with the grape varietals that have been planted.

The 2013 Syrah spends 14 months in

oak barrels developing fantastic flavours; this is really an outstanding wine. The colour is a dark crimson-red and the nose is equally dark – cooked orange notes but with a cinnamon twist. On the palate you get summer fruits, anise and pepper but it’s not over powering and is excellently balanced. It’s smoky but silky and smooth, and because the tannins are fairly soft and the finish is quite short, you quickly want another sip.

We think it pairs brilliantly with something with a little kick – perhaps chorizo, chilli con carne or a charcuterie board. Its softness also means that it’s a great partner for dark chocolate. We also have to compliment the bottle artwork design which is simple but effective and perhaps some of the most attractive out there right now.

Although it’s often said, this is truly a wine that gets better with the second and third glass as the fruitiness becomes more obvious. This is one of our favourites – truly first class.

ENTERPRISE WINE

FEATURE

HARTENBERG CABERNET SHIRAZ 2012 The Hartenberg Wine Estate in Stellenbosch was founded in 1692. Run by Cellarmaster Carl Shultz, who has been with the business for 22 years, Hartenberg is famous for its Shiraz. With vineyards on the Bottelary Hills, the business produces a cab-shiraz blend that is multi-award winning.

The nose is soft and sweet and contains blackberry and raspberry notes. The flavour is fantastic, with elements of cranberry and honey. There’s no acidity that you might get from inferior wines of a similar price, the tannins are medium and the short finish means it’s all too drinkable. We would leave it open by the heat for at least 30 mins before trying. It would suit a juicy steak or sausages and is probably best kept for yourself rather than sharing as the taste is

so perfect. This is certainly one of the most successful blends we’ve come across recently and easily lives up to its reputation as a Classic Wine Trophy competition gold medal winner.

CEDERBERG CHENIN BLANC 2015 A long an interesting history has helped the Cederberg estate, high in the remote Cederberg Mountains, become one of the most wellrespected wineries in South Africa. Run for the last five generations by the Nieuwoudt family, Cederberg has produced award winning wines that have been recognised for excellence.

The 2015 Chenin Blanc comes from 11 year old vines that are planted in glenrosa and sandstone soils, on south and west facing slopes. Many previous Cederberg Chenin’s have taken home accolades for quality.

The 2015 offers a light, off-white colour with a flavour profile that gives you peach, orange and other citrus zest.

The deep flavours also bring out soft passion fruit and pressed apple juice. It’s extremely smooth and perhaps too easy to drink. It has a short finish and leaves you wanting more quickly.

Would go well with sushi perhaps, but we recommend yellow fin tuna.

As for atmosphere, it would be perfect either by a pool or by a fire.

KEERMONT TERRASSE 2014 The Keermont Terrasse is one of the best whites we’ve tasted in a while.

Surprisingly, the estate has only been around since 2003 when the Wraith family moved to the Upper Blaauwklippen Valley from Gauteng. The

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ENTERPRISE WINE

estate is run by a small team and this allows for a constant focus on quality, getting all the small details correct.

The Terrasse is a blend of Chenin Blanc, Chardonnay, Sauvignon Blanc and Viognier. Its colour is a light white, golden yellow and the nose instantly gives off sweet aromas. The taste is fantastic; perfectly balanced and beautifully smooth. Notes of honey, treacle and butterscotch with grapefruit and elderflower. It also has vanilla and apple rounding off a sweet flavour that is like no other. It’s light and doesn’t have an overpowering acidity and this comes from that attention to detail offered by the farmers and winemaker.

To date, it has picked up more than 18 internationally recognised awards and commendations.

On a summer’s day, ice cold, we couldn’t imagine a better wine. Many would recommend pairing with white fish but we’d go for something sweet like a crème brûlée, a sorbet or a traditional shortbread.

GROOT CONSTANTIA SAUVIGNON BLANC/ SEMILLON 2015 Groot Constantia is probably the most famous winery on our list; situated just south of Cape Town, on a popular tourist wine trail, it’s a full scale agricultural business with a farm, winery, museum, art gallery, restaurants and conferencing facilities.

As one of the oldest wine businesses in South Africa, Groot Constantia wine comes with a reputation. The vineyards are located on the eastern slopes of Table Mountain and the region boasts an ideal climate for winemaking. Boela Gerber, Danie Keulder and Floricius Beukes lead the winemaking team and their products delight consumers and judges all over the world.

The Sauvignon Blanc/Semillon 2015 is 91%/9% blend and you get fruitiness from the Sauvignon and strength and body from the Semillon.

On the palate there’s honey flavours that are complemented by brown sugar and sweet apple. You can also expect grapefruit and other citrus elements. The nose is sweet, containing marshmallow and herbaceous notes.

It’s perfectly smooth with wellbalanced acidity.

This is definitely the best allrounder of the whites that we have tried recently. Would go well with carbonara or similar.

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FEATURE

BOUCHARD FINLAYSON GALPIN PEAK PINOT NOIR 2013 Located in a hidden valley in Walker Bay, on the southern tip of Africa, sits the Bouchard Finlayson Wine Estate. Founded in 1989 by Paul Bouchard and Peter Finlayson, the company plants just 22 of its 125 hectare site leaving the rest for wild indigenous Fynbos and flora.

Bouchard Finlayson is known worldwide for its Pinot Noir and Peter is often regarded as one of the pioneers of the variety in the country. Finlayson’s Chardonnay and Sauvignon Blanc are also often praised. The company’s flagship brand is the Glapin Peak Pinot Noir. We were eager to open this bottle and, because of its reputation, it had us feeling excited.

Barrel matured for 10 months in French oak, the flavour profile is dark and rich. There’s a lot of red berry and forest fruit and the tannins are soft. Many say that this is a ‘new-world burgundy’ and we would agree thanks to the peppery spice. The nose offers cherry notes and also has woodland/earthy elements.

The obvious food pairing is a roast lamb or poultry stew but we would enjoy with peppered venison.

DELAIRE GRAFF CHENIN BLANC 2014 The Delaire Estate, just West of Stellenbosch, is a luxury destination providing visitors with lodgings and a spa, quality restaurants, art galleries, lush botanical gardens and extravagant boutique shops. The wine produced here is equally grand. Vines are planted in unique terroir, on the crest of the panoramic Helshoogte Mountain Pass and, according to the

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company, its wines are an opportunity to ‘taste a piece of heaven on earth’ (Delaire meaning ‘from the sky’).

One of the highlights is the 2014 Chenin Blanc. This wine has been recognised by Platter’s and Tim Atkin for its quality and it certainly doesn’t disappoint. We enjoyed this on one of the hottest days of the year so far and straight from the fridge, the sweet fruity nose was quickly tantalising the taste buds. It’s not too sharp or too soft, very well balanced and the colour is clear white. On the palate you get honey, elderflower, peach and lemon and its soft finish leaves you ready to fill up again quickly.

We paired with monkfish and would recommend this partnership all the time.

This is up there with the top whites that we’ve tried all year.

JOURNEY’S END THE CAPE DOCTOR 2009 Named after the South Easterly wind that cools the vineyards, the Cape Doctor, from Journey’s End comes with something of a reputation following the 2007 vintage’s 2011 Michelangelo Gold Medal Awards and 4½ Stars in the 2012 Platter’s Wine Guide.

The Journey’s End Estate is owned by the Gabb family, originally from England, who started their venture on the rolling Schapenberg Hills in Stellenbosch in 1995. Their approach to winemaking is simple: minimal intervention results in top-quality, single-vineyard and appellation wines.

Harvested in March 2009, form south-facing slopes, the Cape Doctor is a blend of 58% Cabernet Sauvignon, 28% Merlot, 7% Malbec and 7% Cabernet Franc.

The nose is peppery but fruity, with blackberry, and instantly indicates a darkness that is equally present on the palate.

There’s dark chocolate notes and vanilla but it’s backed up by a herby, mintyness. You get eucalyptus, green herbs, perfume and floral elements that make for an intriguing mouth. It’s juicy with soft tannins and it’s richer and fruitier than a traditional Bordeaux but it does have similarities.

It would pair well with roasted pork shoulder or strong blue cheeses. This is a wine that would also sit well for a year or two, allowing for further enhancement of the flavours.

BABYLONSTOREN NEBUKADNESAR 2012 The Babylonstoren farm, located between Stellenbosch and Paarl, is one of the oldest Cape Dutch farms in the country. With roots dating back to 1692, Babylonstoren has a reputation for quality across all of its business offerings. Whether it’s wine, food, hospitality or tourism, the company is set up to delight customers.

In 2014, Babylonstoren unveiled what it calls its flagship red wine

ENTERPRISE WINE

attention have gone into the winemaking process.

The nose is deep and dark and the scent is reminiscent of a Shiraz and the palate too has Shiraz-elements. It’s peppery, spicy and has strong tannins but it’s not overpowering and is certainly enjoyable. The spiciness is complemented by rich fruity dark berry flavours; blackberry and cherry. There’s also an earthiness that reflects the varied terroir on the farm, and the 24 months in French oak barrels.

This wine needs to be aerated but after, it would complement a spicy beef casserole with mustard.

Don’t forget, Babylonstoren also produces a fantastic Chardonnay which is well worth a try.

– a Bordeaux style blend made up of 48% Cabernet Sauvignon, 19% Merlot, 15% Cabernet Franc, 11% Petit Verdot and 8% Malbec. Named Nebukadnesar, after Nebuchadnezzar - the king responsible for the Hanging Gardens of Babylon – this red is big, bold, dry, spicy and full bodied.

Cellarmaster, Charl Coetzee says Babylonstoren has taught him ‘that there is no compromise for quality, and attention to detail is everything’ and you can tell with Nebukadnesar that huge amounts of care and

DIEMERSFONTEIN SUMMER’S LEASE 2014 This blend, made up of 75% Shiraz, 14% Mourvédre, 6% Grenache and 2% Viognier, is a triumph of a modern mix. It’s also affordable at around R105.

45 minutes from Cape Town, the Diemersfontein Estate sits in the shadow of the grand Hawekwa Mountains. The first vines were planted in the 1970s by the father of current owner, David Sonnenberg. The 183 hectare farm benefits from fruitful soil, reportedly named in ‘the top 5% soil quality in the land’.

The Summer’s Lease gives you flavours including raspberry, sweet cherry, strawberry and plum, and it

has a nose that offers spice, smoke and wood. The agile tannins make for a medium finish. It certainly requires aeration and best enjoyed just above room temperature.

Such a versatile wine, this would work well with many dishes but we would go for fresh pigeon breast with balsamic salads.

LE RICHE CABERNET SAUVIGNON RESERVE 2013 Pick up a Cab Sauv from Le Riche and you know you’re going to get a good wine. The business was founded by Etienne le Riche in 1996 and he loves Cab Sauv. Now run

by Etienne and his family, Le Riche has become known for producing some of the best Cab Sauv in the country, winning numerous awards and accolades along the way.

The 2013 Reserve has a complex flavour profile and it’s a must-try for any red wine lovers. Dusty and earthy, the smoky flavours include notes of coffee, cigar and dark sour fruits. There’s also dark chocolate and cassis-style fruitiness.

It is drying and has strong tannins, with a long finish, and the intense flavour give a nose of dried fruit; plums and cherry.

Importantly, this is a wine that by all accounts is one for the cellar. It is expected to mature well and the flavour profile is predicted to blossom even further. Some have called this ‘the best Cab Sauv in SA’, others have used the words ‘masterpiece’ and ‘showstopper’ and we agree. But we really should have expected something special from Le Riche, after all, the business ‘spares no effort or cost to ensure a wine of quality and consistency’. Selecting only the finest grapes from top growers, and by using tried and tested simple but innovative processes, Le Riche ensures quality, elegance and consistency and the Cabernet Sauvignon Reserve 2013 is the perfect example of that.

www.enterprise-africa.net / June 2016 / 15

EKM EXPORTS

Multi-Million Rand Investments for SA Fruit Exporter

PRODUCTION: Karl Pietersen

With celebrity marketing campaigns, a sparkling new pack house facility and a quality product that is in demand all over the world, right now is a good time for leading SA fruit business, EKM Exports.

//

South Africa’s fruit export business is hugely important to the country’s economy.

The country is one of the world’s largest exporters of citrus fruits and SA products are enjoyed all over the world. Exporting brings much needed cash into the economy and trading in international markets supports many jobs. It’s essential that South Africa continues to invest in such an important business and helps to grow it so that people can benefit from the nations fertile land.

One company that has continued to drive the fruit export business forward is Gauteng-based EKM Exports, one of the country’s leading

fruit growers and exporters. Now exporting in excess of three million cartons of carefully grown SA citrus produce every year, EKM is marketing aggressively in foreign markets, taking advantage of favourable foreign trade conditions and also looking to the continent for further growth.

“The biggest receiver of our total basket of fruit is China. 35% of our volume goes into the Far-East markets. 30% of our volume goes into Europe. Europe is attractive for all exporters as the continent consumes all types of varieties sizes and class 1 and class 2 fruit. After that comes the Middle East, Canada and

other smaller markets,” explains EKM Director, Brendon Kruger.

“There is a lot of demand in the countries such as Angola, Zambia, Senegal, Sudan, Nigeria and surrounding; however the problem is that the pricing is not competitive, although we are still adamant to continuously increase our volumes into Africa.”

Unlike many other companies, the downward trend in the currency market, seeing the Rand reach record lows against the Euro and Dollar, has seen the export market become hugely attractive to foreign buyers.

“For us, in the export market, it’s been positive,” says Kruger. “Obviously

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BUSINESS PROFILE

things get more expensive for the farmers; production costs, fertiliser, chemicals, wages etc. but overall it’s more positive than negative for us.

For the farmers that have the quality fruit to export – they’re benefitting a lot. We as producers realise in the short term we will benefit on the exchange rate but even if it stays this way in the long-term the cost will catch up with us and the benefit of the weak rand will be something of the past.”

GROWING ORGANICALLY After its formation in 1998, EKM and GoGo has grown significantly and now employs more than 2200 people across all operations. The company only sources fruit from reliable suppliers who hold quality and professionalism in the highest regard.

In order to continue growing and developing relationships with important existing and potential customers, the company started a marketing campaign in 2015, using a South Africa cricket legend as the spearhead. Currently recognised as one of the greatest batsmen of all time, playing for the Royal Challengers Bangalore in India, De Villiers is the face of the GoGo citrus brand and helps drive business in Asian markets.

“It’s definitely a positive thing in the market, especially in places like India and Bangladesh,” says Kruger.

“We are going to carry on with this campaign and push it harder than we have before. We met AB and he’s a businessman as well as a cricket player.”

India has been identified as a key target market for SA fruit exporters who are reportedly expecting to see a significant increase in the volumes of fruit available for export over the medium to long-term.

The CGA said last month: “India is seen as offering huge potential.

With present volumes of about 9,000 pallets the goal is to increase this

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volume by tenfold during the next ten years. Most players in the Indian market believe that this is possible.”

CGA CEO Justin Chadwick spoke to Asia fruit at Fresh Produce India and said: “In order to make that happen role-players from Southern Africa will need to understand the dynamics of the market.”

EKM certainly understands the market and its success at home, farming in South Africa, is matched in its chosen export locations. ‘Our aim is to make high quality fruit available to everyone, everywhere’ is the one of the company’s slogans and quality forms the base of the next planned major investment.

“The next stage for us is that we want to have all of our farms under protective netting so that we can bolster our volumes with Super Class 1 fruits as markets will pay a premium for that quality. It’s about quality over quantity; for the moment we want to in invest in vertical growth by getting maximum quality product per hectare and not horizontal growth by adding more hectares,” says Kruger.

FRUIT IN THE FAMILY GoGo was established by two brothers Tian Kruger and Eben Kruger. EKM is the export company that markets the fruit of the GoGo farmers and many other top quality producers. Eben Kruger (Brendon’s father) is the CEO of the export company and Tian is the biggest producer in the group. As a brilliant farmer Tian started with citrus 18 years ago and immediately got his brother involved on the marketing side. Together they have grown the business to what it is today and using their passionate approach to business, they have been the catalyst behind the development of the GoGo group and EKM Exports.

“We started with only exporting Tian’s fruit and soon after, we started exporting for a few farmers in the area. Instead of exporting for five,

six or seven different farmers, they created a brand that was attractive so that the farmers could build a name in the markets that their exporting to,” explains Brendon. “The GoGo group was formed with five farmers that are of some of the best in the business and together they have followed the same dream for the last 15 years.

Throughout that time we have grown from strength to strength investing in everything necessary with citrus and table grape farming. Big investments over the last three years were the state-of-the-art cold room facilities and the very expensive investment covering our orchards with nets. The latest is the new pack house that came in operation in May.” The family approach to business from the Kruger’s has allowed the company to remain true to its values and, leading by example, Eben Kruger has shared his drive and determination. “Each and every member of the team has a fire burning deep within his core. A desire to exceed expectations. A desire to innovate. A desire to succeed,” the company says. “We have a close-knit, streamlined team. Each of our markets has dedicated personnel enabling 24 hour communication and personal, transparent relationships.”

Today, EKM’s product portfolio includes the GoGo citrus range of oranges, lemons and soft citrus. With table grapes, the group is expanding quickly to fulfil big demands from the market.

“With citrus the five GoGo farmers have a total of 815 hectares and 1050 hectares will be in production by the end of 2017. EKM Exports target is to export 2500 containers in 2016 which will include grapes, apples and citrus,” says Brendon.

NEW PACK HOUSE The most recent investment for EKM is a brand new 8000m2 pack house, located alongside the company’s existing 9500m2 cold room

EKM EXPORTS

infrastructure, allowing for smooth, efficient and streamlined movement, prep and storage of goods. Using MAF RODA machines from France, the most sophisticated machinery in fruit industry, the pack house can class fruit by colour, size, blemishes, and shape.

The more-than-R100 million investment is a statement of intent from the GoGo group and EKM Exports, signalling ambition for the future, creating in excess of another 350 local jobs.

“The pack house was built for and by the GoGo group. We built one centralised pack house next to our cold room facility. The first reason was that the volumes became too big for each producers existing pack house.

Another benefit is that everyone is using the same pack house so the quality is standardised. It makes packing orders for clients easier and

quicker – if a client is ordering so many cases of a certain class, we can pack it exactly how they want it. The pack house can pack around 90 tons of fruit each hour,” Kruger says.

“We’re the only inland coldroom facility in South Africa that is approved for phytosanitary inspections as well as doing the pre-cooling for special markets like China, India, and Taiwan. In the past, any grower or exporter would have to send containers of fruit to the port and at the port they would do the inspections and this caused congestion and delays as everyone is harvesting at the same time and everybody is sending their fruit to the port at the same time. Now that we have the pack house right next to the cold-room, we are much more efficient.

“The fruit goes straight from the pack house into the cold-room and

we load the containers, seal them, and the next time the container is opened is by the client overseas,” he adds.

This is an extremely exciting time for EKM Exports and the GoGo brand. With its marketing efforts helping to gain further traction in the Indian and Bangladeshi markets, and investments in infrastructure in South Africa making operations more efficient than ever, this is a business that is set for the future and one which has positioned itself extremely strongly as it continues to grow.

EKM EXPORTS +27 12 809 1494 info@ekm-exports.com www.ekm-exports.com

State-of-the-art turnkey presorting & packing solutions designed and built up by our French group GoGo Citrus Pack House Marble Hall - South Africa

with courtesy of

SORTING

HANDLING

GRADING

PACKING

Visit our website on: www.maf-roda.com

www.enterprise-africa.net / June 2016 / 19

EKM Exports and GoGo Citrus are proud to open the new 8000m2, R100 million pack house in the company of our long-term partners:

HILLFRESH INTERNATIONAL is an importer of fresh fruits, vegetables and exotics with a strong focus on quality and taste. Working together closely with our suppliers, HILLFRESH is focused on finding new varieties with more flavor and higher returns adding value to all partners in the chain. Therefore we are proud to be exclusive European GOGO importer.

KIBSONS INTERNATIONAL LLC was founded in 1980 in the Emirate of Dubai. Their entrepreneurial spirit and long term view of the consumer goods industry has created the foundation for market leadership in the fruit, vegetable, meat and poultry sectors. KIBSONS International has grown to occupy a pre-eminent position in the fresh fruits, vegetables, meat and poultry industry in the UAE, and is proud to be working with GOGO and EKM EXPORTS.

MSC is a world leader in global container shipping and a company offering global service with local knowledge. MSC also provides integrated network of road, rail and sea transport resources which stretches across the globe. MSC is a shipping partner to EKM and THE GOGO GROUP.

NEW ERA PACKAGING is one of the largest manufacturers of corrugated packaging in South Africa. We are accredited suppliers of corrugated citrus export cartons and are proud to do business and be associated with EKM EXPORTS and THE GOGO GROUP.

LANTAO is a leader in importing premium fruit into Mainland China with branches and distribution centres in Shanghai, Guangzhou, Beijing, Zhengzhou, Shenyang, Herbing, Qingdao, Chengdu, Kunming and with buying offices in Chile, USA and Canada.

LANTAO’S mission is to find the finest shippers from the best growing regions to reach China’s rapidly expanding consumer market. Our buying team works in partnership with the best shippers worldwide to bring the best quality fruits from around the world into China’s largest markets and second-tier and even third-tier cities throughout mainland China.

PLANNER CORPORATION is one of the leading import/buying agents in Bangladesh. We deal mainly with apple and citrus products. We purchase bulk quantity fresh fruits from reputable and qualified suppliers in different part of the world.

RON SA provides full logistics solutions such as shipping & transport for both GP & REEFER CARGO globally. Our relationship with EKM & GOGO GROUP goes back almost a decade due to trust, transparency and healthy trading.

YOGO is proud to partner with EKM/GOGO. We have over 20 years’ experience in the fruit industry in China and we have a good long-term relationship with each other. Here we congratulate EKM/GOGO on opening the new pack house facility!

4FRUIT COMPANY is an all-round importer and exporter in fruit and vegetables. Our base is in Ridderkerk, the Netherlands.

We are importing from the main producing areas in the world. We are export products to 26 countries in Europe.

We have worked with the members of the GOGO GROUP since 2000 with great pleasure.

EKM Exports is a proudly South African export company that specializes in the production, procurement and export of fresh produce from around the world.

SANSA

Is Space Weather

Affecting Your Business?

PRODUCTION: Manelesi Dumasi

The South African National Space Agency continues to monitor the effects of space weather across the continent.

Its work is perhaps underappreciated but it is now searching for growth and looking to help integrate spaceknowledge with government decision making, for the benefit of SA society.

//

You might not know it, but your business has and will potentially be affected by space weather.

Space weather is a scientific field that has been studied for many years, but its nature and effects are still not fully understood. It is defined by Natural Resources Canada as: “A collection of physical processes, beginning at the Sun and ultimately affecting human activities on Earth and in space. The Sun emits energy, as flares of electromagnetic radiation (radio waves, infra-red, light, ultraviolet, X-rays), and as energetic electrically charged particles through coronal mass ejections (CME) and plasma

streams. The particles travel outwards as the solar wind, carrying parts of the Sun’s magnetic field with them.”

In South Africa, monitoring of space weather and utilising information to predict and prepare for its effects is a task that falls to SANSA – the South African National Space Agency.

The SANSA Space Weather Regional Warning Centre was established in 2010 with the mandate to develop space weather capabilities within South Africa, improve the understanding and awareness of space weather within Africa, and provide a space weather operational service to government,

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BUSINESS PROFILE

industry and the public. The modernSouth Africa is now well-known for its capabilities in science and technology and this has helped SANSA to grow and develop internationally recognised know-how; know-how that space agencies from all over the world want to share.

SANSA recently hosted representatives from the Met Office, Mullard Space Science Laboratory, RAL Space, and Imperial College London in the UK. The visitors met with SANSA researchers to discuss a multinational space weather project as part of the UK Space Agency’s International Partnership in Space Programme (IPSP).

Critical national and international infrastructures, such as power grids, transport, communications and financial services specifically, are at risk from the adverse impact of space weather.

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Governments in several countries, including the UK, are now factoring these risks, along with those caused by natural hazards, into risk management programmes.

“SANSA will contribute knowledge on the impacts of space weather on crucial infrastructure such as power grids and the country’s diverse range of technological availability and high dependence on satellite and mobile technology, as well as its ground-based space-weather monitoring infrastructure that could enhance services provided by other nations,” said Dr LeeAnne McKinnell, SANSA MD. The IPSP, which will help to determine the socio-economic impact of the consequences of space weather and also build capacity in developing counties to contribute to the international space weather ‘problem’, is well received in South Africa, explains McKinnell.

//WE WANT TO INVEST IN INFRASTRUCTURE AND TRAIN PEOPLE SO THAT MORE BUSINESSES CAN SUPPLY THE SPACE INDUSTRY, NOT ONLY LOCALLY BUT ALSO IN AFRICA//

SANSA

“If you look at space weather technology currently; the prediction of solar storms has improved,” she says. “SANSA, in collaboration with space weather centres around the globe, has conducted extensive research into the impacts of space weather leading to more accurate prediction and forecasting models which help protect technology on earth and in space. Space weather monitoring is essential for the improved understanding and forewarning of solar events that could lead to severe space weather on Earth. Although impending space weather cannot be halted, constant monitoring allows for industries that may be affected to go on standby and provides important scientific information to utilise in decision making.

“Globally, the technology is moving so rapidly that we can now predict where space weather events may occur and the possible extent of the potential impact.”

And the technology being developed

by SANSA and its partners, and the applications that are now available are not just helpful with space exploration and space weather monitoring, they’re also extremely useful in ‘earth observation’, weather prediction and other observational tasks. Following the droughts which have plagued the country since the third quarter of 2015, the SA government tasked SANSA with developing an application that could assist in the overall care of the situation as well as provide ad-hoc information to other government departments.

“The drought monitoring system came out of a need from government,” explains SANSA’s Corporate Communications Manager, Vaneshree Maharaj. “They needed tools and information because the drought impacted our entire population. Apart from just giving the government the data, we’ve created tools and applications and

provided training for their staff on how to utilise the tools so it’s all addressing a critical need. We also provide a national mosaic of the country which is given freely to all government departments and they use that for various things including infrastructure development, looking at the growth of informal settlements, where proper housing is needed, looking at our power lines and this helps the housing department and also Stats SA. Space is becoming integrated in the government’s toolkit for making decisions and starting projects but we would like to be collaborating with more public and private sectors to ensure greater service delivery to the nation,” she says.

Of course, just like any scientific organisation, funding remains an issue for SANSA and the business will look for ways to boost its funding in the future but right now it continues to work closely with international partners, both in Africa and

The French South African Institute of Technology offers postgraduate programmes in Satellite Systems Engineering at Cape Peninsula University of Technology. Its engineers and students produced TshepisoSAT - Africa’s first nanosatellite – launched in 2013, and are currently developing its next generation satellite, ZACUBE-2. In response to the Government’s Operation Phakisa, we envisage using a constellation of nanosatellites for Maritime Domain Awareness. As such, the Africa Space Innovation Centre at F’SATI is the African leader in the development of nanosatellite technologies, services and skills for applications such as space weather, ship tracking and disaster monitoring and response.

We offer these bespoke communications systems for CubeSats: • S-Band Transmitter • S-Band Patch Antenna • VHF/UHF Transceiver For more information about our academic, research, commercial and community engagement programmes, log on to our website or simply scan the QR code with your smartphone.

www.cput.ac.za/fsati +27 21 959 6925 | vanzyli@cput.ac.za | Twitter: @fsatispace

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BUSINESS PROFILE

further afield, to leverage existing assets.

“We download data from a few satellites which belong to the French Space Agency (CNES), and data from NASA’s Landsat 8, and we also have agreements with other agencies both for access to valuable data resources and for providing assistance in satellite data acquisition,” Maharaj explains.

“We download the earth observation data at our space operations facility at Hartebeesthoek. They process, analyse and create applications from that data for our stakeholders who

are government departments, SOCs and private customers who all use SANSA acquired data for a wide range of activities.

“We are currently part of the ARMC (African Resource Management Constellation) agreement which includes SA, Nigeria, Algeria, Kenya, and possibly Egypt in the future, and we all contribute earth observation satellites. We often buy data, which is very expensive, so as a partner in the Constellation we can have greater access to African owned data, thereby reducing the long term costs and

increasing the affordability of sharing this information with people on the continent.

“We also partner with Ghana where we have a radio antenna, we do a lot of training of governmental employees across Africa concerning water management through the TIGER project,” she says.

All of this work is vital, not only for the SA government and various other stakeholders, but also for businesses on a much wider scale. Space weather and extreme terrestrial weather such as droughts and floods etc can all have an

//OPTI-NUM SOLUTIONS Innovation is the key to growing an economy in a knowledge-based society. SANSA have recognised this and is focussed on growing the intellectual capital of South Africa in earth and space sciences. Coupled with skilled human capital, innovation in engineering is allowing us to gather increasing amounts of data with increasingly sophisticated measuring equipment and devices. Through a focus on data analytics and system engineering software and services, Opti-Num Solutions has for the past 23 years been working with Southern African organisations like SANSA to create the next generation of scientists and engineers.

Opti-Num Solutions supports academic institutions and research centres like SANSA’s Hermanus Magnetic Observatory, by providing MATLAB data analytics software and training to those researchers and students that allows them to explore space science data with minimal programming overhead. Those same tools and services are being used to analyse and understand data and unlock insights in many industries throughout Southern Africa and worldwide, in areas such a Financial Services, Communications Service Providers, and Energy Utilities.

Our work with organisations like the Square Kilometre Array in South Africa is helping to build the next generation of sensing equipment using software engineering systems based on Simulink. This equipment will enable the management and collection of much larger and faster data streams that tomorrow’s sensing equipment will be providing to the scientific community to help unlock and explore the universe.

Companies such as Reutech Radar Systems are able to deliver superior quality products to market faster than competitors using similar approaches.

The ability to quickly try new ideas, experiment and remain engaged are key drivers of innovation. Students, researchers and enthusiasts alike have access to low-cost hardware platforms like Arduino and Raspberry Pi embedded microprocessor systems, which provide a rich environment for applied project based learning, whether formally in higher education or informally at home. Simulink’s support for these embedded systems makes programming these devices accessible to anyone, and prepares those students, researchers and enthusiasts with the tools and techniques that span a multitude of commercial applications. Opti-Num Solutions partners with companies in industries such as Industrial Automation and Process Control, Medical Equipment, Communications Systems, Rail and Transport, and Defence and Aeronautics, to help them to deliver embedded systems and software solutions to international standards, on time and on budget. Through our training services we grow their intellectual capital in areas such as modelling, simulation, control systems and signal processing. Our consulting services provide advisory, capacity or turnkey services to help them meet deadlines and develop their design methodologies in line with international practice.

For more information on Opti-Num Solutions, please contact Dean Redelinghuys, on 011 325 6238, or send email to dean@optinum.co.za.

26 / June 2016 / www.enterprise-africa.net

®

Accelerating the pace of engineering and science

Satellites that tango, using automatically generated code.

That’s Model-Based Design.

To achieve a breakthrough in two satellites performing autonomous formation flying and rendezvous, engineers at OHB Sweden automatically generated verification tests and the final flight code from system models. Discover Model-Based Design with MATLAB and Simulink at mathworks.com/mbd ® ®

©2016 The MathWorks, Inc.

Image of satellite Tango transmitted by Mango. © OHB Sweden www.enterprise-africa.net / June 2016 / 27

BUSINESS PROFILE

impact on our day-to-day lives and people need to be aware of this. This is why SANSA and the government are trying to integrate the work of the agency with overall government policy and decision making empowering people through technology.

“The major area of focus right now is our earth observation program because it plays a critical role in the governments National Development Plan, our priority and our biggest stakeholder is society in South Africa,” explains Maharaj. “Using satellite data, SANSA has produced a number of applications like the drought monitoring system to assist in addressing the challenges our nation is currently faced with. Food and water security is also a concern which is why SANSA provides unique products and services

to government and its departments for the greater good of the country. SANSA is making progress in terms of the next earth observation satellite to contribute to ARMC which is one of our flagship projects. In the process of developing the satellite we will be developing capacity and the larger space industry in South Africa and the African continent.

“We want to invest in infrastructure and train people so that more businesses can supply the space industry, not only locally but also in Africa. Funding is the only delay in this as it’s very expensive but it’s a big drive and it forms part of the National Space Program,” she says.

We will hear more next month about the plans that SANSA has for

boosting its funding and the work that goes into training people. As the agency targets growth, perhaps now is the time to think about how a major space weather event could affect your business – are you prepared? Are you even aware of what could happen and why? SANSA can answer these questions; this is one of the SOCs that is run purely to serve SA society; now would be a great time to show support.

SANSA +27 12 844 0500 information@sansa.org.za www.sansa.org.za

//CREDO Credo is an independently owned, private client wealth management group established in 1998 which has grown into a multi-national business with offices in London, Geneva, Bermuda, BVI and South Africa and interests in Australia and Luxembourg. Credo Capital is authorised and regulated by the FCA in the United Kingdom and is a member of the London Stock Exchange. In addition, it is an Authorised Financial Services Provider (FSP No: 9757) regulated by the FSB in South Africa.

The group has assets under management and administration in excess of £1.9bn and employs over 80 skilled staff.

Credo’s primary aim is to protect and enhance our clients’ wealth. We have a strong culture of building long-term relationships with our clients and we operate in an environment of trust and confidentiality.

Through Credo, clients have a choice between having Credo manage their global portfolio on a discretionary basis or making their own investment decisions by using Credo’s trading platform that provides access to global markets. Clients who choose Credo as their global trading partner can buy/sell listed equities on 21 global stock exchanges, direct bonds, ETFs, mutual funds and structured products.

Credo’s discretionary service includes managing global segregated direct equity, income and / or multi-asset class portfolios. For HNWIs Credo can construct a fully bespoke portfolio, based on the client’s objectives and risk profile, with exposure to multiple asset classes and instruments. In addition, clients who want exposure to global equities have a choice between segregated direct portfolios or the Credo Global Equity Fund.

Credo believes in a long term, low turnover investment philosophy. We do not define risk in terms of quantitative metrics, but simply as the potential to lose clients’ money; accordingly, our approach to investing can be described as a relatively conservative one, focusing first and foremost on capital preservation.

Irrespective of whether a client chooses our discretionary management or trading service, each client has access to our MyCredo system. MyCredo is an online trading and / or reporting platform which we believe is state-of-theart. It is a multi-asset class, multi-currency reporting tool that enables clients to obtain real time data about their portfolios and transactions. MyCredo provides a single portal to all your investments in a secure environment. The platform is easy to use, secure and is truly an open-architecture service.

30 / June 2016 / www.enterprise-africa.net

www.enterprise-africa.net / June 2016 / 31

© Shell

SHELL SOUTH AFRICA

SAPREF Underpins Shell’s Quality Product

Portfolio

PRODUCTION: Karl Pietersen

Shell South Africa has one of the most recognisable and best performing product ranges in the industry.

This is thanks to the advances in technology and innovations that take place at world-renowned facilities such as the SAPREF refinery in Durban.

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BUSINESS PROFILE

34 / June 2016 / www.enterprise-africa.net

SHELL SOUTH AFRICA

//

As well as having an industryleading retail network with some of the most attractive and most comfortable forecourts in the country, Shell South Africa is also a market leader in the manufacture and sale of petroleum and lubricant products. All of this alongside the company’s global capabilities in exploration and production, and

investments in alternative energy, mean that despite the uncertainty in the energy business caused by falling global oil prices, the Shell brand remains as strong as ever – when people see the yellow and red and the unmistakeable logo, they know they’re going to get reliability, value and above all, quality.

In South Africa, Shell markets a number of high-quality products including the well-known Shell V-Power Nitro + and V-Power Diesel, both of which are regarded as some the best available. Then there’s Shell’s range of Helix car oils, Shell Advance motorcycle oil, Shell Rimula heavyduty diesel engine oil and a range of other products that can suit the needs of any customer.

“Shell Lubricants is the number one global lubricant supplier and has a 70-year history of innovation. Some of the world’s top manufacturers choose Shell as the first-fill motor oil for new vehicles in their factories and continue to use a range of our products for ongoing servicing,” the company says.

“Whatever your needs or application, Shell can provide a full range of lubes including synthetic

high-performance products. See how our superior oils and lubricants work to clean and protect your engine, helping to improve its performance and prolonging its life.”

Of course, producing products that meet the varying standards of different industries all over the world is no easy task – in fact, it’s one of the most difficult parts of the Shell operation. Some of the elements that separate Shell are its technological capacity, its ability to build global partnerships and its focus on developing products that customers want.

“Technology leadership for us is about excelling in three key areas: technology innovation, technology application and technology partnerships,” says Andrew Foulds, Vice President Fuels Technology.

“Everyone in our Technology department has a partner in lubricants and vice versa, so technology is now completely integrated as one team.

“We have to make sure our products match the needs of each sector, which is why our product development always starts with a customer challenge. We also evolve them regularly, because our

//SHELL LUBRICANTS IS THE NUMBER ONE GLOBAL LUBRICANT SUPPLIER AND HAS A 70YEAR HISTORY OF INNOVATION//

© Shell

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BUSINESS PROFILE

//SHELL ASPIRES TO BE THE WORLD’S MOST COMPETITIVE AND INNOVATIVE ENERGY COMPANY, AND FOR OUR BUSINESS IN SOUTH AFRICA, SAPREF PLAYS ITS ROLE IN OUR REALISATION OF THIS VISION// customers and their products and technology are changing all the time.”

In South Africa, one of the major contributors to the company staying in pole position is the SAPREF Refinery, located in Durban and jointly owned by Shell South Africa and BP Southern Africa. The refinery produces a variety of petroleum products, including petrol, diesel, paraffin, aviation fuel, liquid petroleum gas, base oil, solvents and marine fuel oil. In 2012, 6.89 million tonnes of

36 / June 2016 / www.enterprise-africa.net

crude oil were processed, producing approximately 27% marine fuel oil and specialities, 25% petrol and 41% diesel and jet fuel.

SAPREF is a true African success story. As Southern Africa’s largest crude oil refinery, SAPREF has been operating successfully for more than 50 years, producing around 2.7 billion litres of petrol each year - enough to take 800,000 cars around the globe.

When SAPREF reached its 50th anniversary in 2013, many prominent

figures from government and industry were quick to offer their congratulations.

“Shell aspires to be the world’s most competitive and innovative energy company, and for our business in South Africa, SAPREF plays its role in our realisation of this vision,” said Shell SA Country Chairman, Bonang Mohale. “[SAPREF’s] contribution to our province and our country extends far beyond keeping this country moving through refining liquid fuels,” said Senzo Mchunu, former Premier of KwaZuluNatal.

The wider impact felt by the province was realised recently when SAPREF announced that it would invest R18 million to develop its skills development programme which focuses on creating opportunities for

SHELL SOUTH AFRICA

young people by offering bursaries for university studies in engineering, artisan training via the Durban South Training Trust (DSTT ), learnerships at SAPREF’s accredited training college, a graduate engineer programme, internships and a school talent pipeline programme.

“Through this integrated programme, SAPREF aims to play its part in addressing the shortage of technical and engineering skills in the country, while addressing our own business need for highly skilled professionals,” said Lindiwe Khuzwayo, SAPREF’s human resource manager to the Southlands Sun. And despite the news that other oil and gas majors have exited their South African operations thanks to the less-than-favourable market conditions,

Shell South Africa remains committed to a long-term plan in the region. Mr Mohale has repeatedly stated that the company remains interested in developing a ‘fracking’ programme in the Karoo, in order to utilise the potential natural gas resources held beneath the ground. This was during a time when it was found out that Chevron would leave SA, potentially paving the way for the closure or replacement of its Cape Town refinery.

Overall, with investments into people and infrastructure, the future for Shell and SAPREF looks positive.

By most accounts, it is expected that the refinery has at least another half century of life and work in front of it – supporting the quality Shell product range that has delighted customers for decades.

SHELL SOUTH AFRICA +27 11 996 7000 info@southafrica.shell.com southafrica.shell.com

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KAEFER

KAEFER Has Industry Covered PRODUCTION: Karl Pietersen

KAEFER’s product and service portfolio offers solutions to company’s operating across a range of industries and, with its global presence and unrelenting drive for quality, the company strives towards its vision of ‘eliminating the energy waste’.

KAEFER

//OUR MISSION CONTINUES TO BE THE DELIVERY OF HIGHLY PROFESSIONAL SERVICES AND SOLUTIONS, WITH AN EMPHASIS ON SAFETY, QUALITY, AND THE ALIGNMENT WITH OUR CLIENTS’ SCHEDULE, TECHNICAL, AND COST SPECIFICATIONS.//

//

KAEFER is the world’s largest privately owned provider of integrated services and solutions. “We encourage sustainability as our insulation solutions reduce energy consumption and preserve the environment.”

KAEFER has operations in more than 40 countries and employs more than 25,000 people globally. Thanks to its international experience and knowledgeable and innovative workforce, the company delivers a truly world-class service to clients when it comes to design and application of heat, cold, noise and fire protection insulation systems, as well as scaffold

Africa, the company’s main services include insulation, scaffolding, acoustic engineering and industrial painting and these services are rolled out mainly in petro-chemical plants, power generation, mining and processing, chemicals and paper manufacturing.

“Our integrated services and solutions make the environment, life, work and production safer and more sustainable,” says Managing Director, George Wardrope.

erection and the application of surface protection.

Originally founded in Bremen, Germany in 1918 by Carl Kaefer, the company opened its doors in South Africa in 1976. In 1998, KAEFER purchased the Thermal Insulation Supplies and Contractors (Pty) Ltd business from Murray and Roberts and in 2010 established KAEFER Energy Projects (Pty) Ltd as a black women owned business to focus on the South African energy sector.

The company’s focus is clear – integrated services solutions, and its core competences all compliment this targeted industry offering. In South

VALUE OFFERING When working alongside a client, KAEFER is present through most of a project’s lifecycle. From budget proposals, to tender negotiation through to project management and execution, KAEFER supports their clients’ success by offering the most integrated solutions on the project as well as maintenance services thereafter; KAEFER are a reliable partner. “Our extensive expertise contributes to our customer success,” states Wardrope.

“To eliminate the energy waste” is

//25,000 staff Global workforce of over

KAEFER’s vision and so the company develops tailor-made solutions to energy efficiency problems in all industrial environments and facilities.

“We apply our skills to new facilities, extensions, refurbishments, large-scale projects and maintenance work.

“We are familiar with the problems that crop up in different industrial situations, such as constantly changing conditions, the demand for new materials and changes to environmental legislation, and can provide the best possible solutions to them.

“Our highly experienced staff have been tested in the field over many years

and are able to guarantee outstanding efficiency and deliver innovative solutions on time, while preserving our customers’ resources and the environment,” says KAEFER. Using insulation in the correct way is hugely important in today’s energy-conscious world and this is why finding the correct partner is so important. The global industrial sector accounts for approximately one third of total global energy consumption, and it is also reportedly responsible for around one third of fossil-fuel-related greenhouse gas emissions. Translating these volumes to monetary values is

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BUSINESS PROFILE

www.avemel.com

Avemel Logistics is a proud supplier of transport services to KAEFER

40 / June 2016 / www.enterprise-africa.net

not easy but a European study found that the industrial sector in the EU could save $3.8 billion annually if they simply used properly installed insulation.

Common problems include uninsulated pipes, insufficient or damaged insulation or the wrong type of insulation.

KAEFER can ensure the correct solution is found, quickly and efficiently. Its track record in South Africa to date is the perfect example – some of the country’s largest construction, energy and industrial companies call KAEFER their partner.

PROJECTS “Some of our clients on projects include SAPREF, Sasol, Eskom, Sappi, Fluor SA, S.A. Breweries, ALSTOM Africa, Grinaker-LTA and Murray & Roberts.

“Current projects include maintenance contracts at SAPREF and Eskom and new build projects at Eskom’s Medupi power station,” Wardrope explains.

Also on the list of clients is BOMBELA, PetroSA, Chevron, ENGEN, Mozal, Babcock Engineering Services and Group Five to name just a few.

And it’s not just South Africa where the company has a presence in Africa. KAEFER has worked on insulation, scaffolding and painting projects in other countries such as Mozambique, Zambia, Zimbabwe, Botswana, Lesotho and Swaziland.

But how does KAEFER carry on gaining big contracts and partnering with big-name clients? What sets the company apart from the competition?

One element is KAEFER’s quality certifications and its health and safety credentials.

“Certified by the South African Bureau of Standards are; our Quality Management System in accordance with ISO 9001:2008, our Environmental Management System (ISO 14001:2004) and our Occupational Health and Safety Management System (OHSAS 18001:2007).”

The KAEFER Group has maintained high standards of operation throughout the world, often leading the field in terms of training and safety. In South Africa, the company established an in-house training centre, the Sizani Technical Skills Training Centre, in 2005 and through this has provided Construction Education and Training Authority (CETA) approved scaffolding training to staff members.

Training courses are offered on site in South Africa and neighbouring countries and are designed to assist companies in meeting the demands of the ever increasing new safety legislations. A sheet metal worker training programme has recently been added to the offering.

Helping employees to grow and develop has long been a target for KAEFER and it comes with benefits for both parties. “Every employee is a source of successful new ideas, which have to be transformed into performance and customer benefits. This is made possible through the company’s Lean initiative of continuous improvement.

“KAEFER’s success is due to the quality and marketability of our products, systems and services. In all we do, the health and safety of our staff and partners are paramount.”

KAEFER

GROWTH KAEFER is a growing business and globally the company has picked up a number of new contracts in the oil and gas sectors of Europe and South America. In South Africa, the on-going national focus on increasing power generation capacity will ensure the company continues to assist in the development of the country. “The figures for recent years show that even during times of economic crisis, KAEFER has been able to maintain a very stable business,” Wardrope says.

“Since the insulation business Carl Kaefer & Co was founded, our company has grown continually.

New markets brought new staff, new investments, new divisions and more and more offices all around the world.”

And the future looks extremely

bright. As one of the industry’s leading companies in both South Africa and around the world, KAEFER is perfectly positioned to grow even further and continue to bring efficiency to wherever people need it.

“We are not easily recognisable but we are there,” Wardrope reminds.

“You find us in factories, power stations and on drilling platforms.

In tunnels and on piping. In ships, football stadiums and research facilities. In clinics, hotels and schools. We are everywhere. Maybe even where you are right now.”

KAEFER +27 11 974 8123 info@kaefer.co.za www.kaefer.com

AFTERWORD - KAEFER KAEFER holds a worldwide leading position as an integrated services and solution provider, specialising in Insulation, Access, Surface Protection, Passive Fire Protection, as well as Interior Outfitting. With an annual turnover of around €1.5 billion, KAEFER’s business is carried out in its Industry, Marine & Offshore and Construction divisions.

Headquartered in Bremen, in the north of Germany, the company has operations in over 40 countries, a current workforce of 25,000.

Further information can be found on www.kaefer.com.

Rockfibre SA produces Rockwool products for thermal and acoustic insulation solutions.

Rockfibre industrial Insulation is successfully used in the power generation, fuel and chemical production and the paper and pulp industries in South Africa.

Rockfibre SA Pty Ltd 8 Colenso Street Power Ville Vereeniging (27)16-4212045 (27)164212048 (27)720525582

Visit Us Online!

TEL FAX MOBILE

www.enterprise-africa.net / June 2016 / 41

SHELL SOUTH AFRICA

Shell Looks to Coffee to Fuel

Consumer Demand PRODUCTION: Daniel Scott

Shell South Africa is perhaps the most recognised fuel brand in the country, if not the world. But positioning the brand as the frontrunner in the industry doesn’t come easily. The company is working hard to improve and increase its customer offerings and that has been demonstrated in the past few years by a thriving relationship with Vida e Caffé.

//

Back in 2013 in London, England, a young entrepreneur started a business that saw him turn roast coffee beans into bio-energy. Coffee became a fuel and began to drive not only sleepy Londoners every morning, but also industrial boilers in large buildings.

Coffee and energy have long been closely related; the caffeine-rich drink boosts your energy levels and keeps you focussed and awake. In South Africa, coffee and fuel have once again been closely linked and it’s thanks to two of the country’s most pioneering businesses in their respective fields. Instead of using coffee beans to create energy for generators, Shell South Africa and Vida e Caffé began a partnership three years ago that is now flourishing and providing quality fuel for South Africa’s people and their cars.

Shell has one of the largest retail networks of any petrol company in South Africa and Retail Marketing Manager, Yaasier Abrahams says that having service stations that are welcoming and able to provide a quality African coffee brand has bolstered the company’s already sterling

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offering.

“People are looking for a quality coffee, a morning caffeine fix on their way to work and all of these road warriors who are on the move all day, they are looking for something different from the traditional products that are usually sold in the convenience stores,” he says. “Vida e Caffé is one of the pioneers of the coffee culture in South Africa, it’s actually one of the strongest local coffee brands and they have 50-60 stores on the high-streets and in malls, they have an Afro-Portuguese heritage and they positioned themselves as a cool and hip brand in the SA market so we partnered with them in 2013.

“Over the past two years, we’ve had an accelerated roll-out with them to develop a small format with fully served offers.

Today, it stands at about 109 forecourts across the Shell network. We have a total of around 630 service stations, 300 of which have Select-branded convenience stores and over the past two years we’ve had a massive roll-out with these in-line coffee stores.

“Vida e Caffé started in South Africa

and it’s been a phenomenal success.

Customers love it because they know they can get a quality coffee experience that they find in the high-street stores in more and more Shell forecourts across the country.”

The ‘coffee culture’ in South Africa has lagged behind the rest of the world but in the last two years, an upturn has been reported. Stats SA report that coffee shops have seen a 7.1% increase in income since 2014 with impressive growth across the country.

Vida e Caffé CEO, Darren Levy says that coffee is certainly on the rise: “There is a surge in the number of people who are drinking coffee and this is impacting on product awareness and product quality.

Africa and South Africa look set to be superb spaces for growth for the coffee industry with plenty of opportunities for great providers of great coffee,” he told Africabusiness.com.

Combining the quality product from Vida with the footprint of Shell has resulted in major successes for the business;

BUSINESS PROFILE

Abrahams explains that feedback from customers has been positive.

“It’s been absolutely phenomenal,” he says. “I thinks it’s particularly because the Vida e Caffé brand is so strong locally.

We’ve not had Starbucks, and McDonalds probably has their McCafe’s at about 200 stores around the whole country and that’s about the closest we’ve had to a real chain-coffee shop.”

And Shell isn’t just catering to certain customers in certain demographics.

Offering coffee that suits different schedules, different prince points and different tastes is very important to the company so it has worked with Vida to create a new brand that focusses on quality coffee to suit various tastes and affordability levels but also provides an innovative food menu.

“We’ve also developed a secondary brand of Vida e Caffé called Torrador and the Torrador brand gives you the quintessential coffee and experience but allows us to cater the food range to a different market because the Vida e Caffé has a certain equity in the market and had a pretty fixed menu. Depending on the trade areas, Torrador allows us to tailor the menus and cater for things that suit the local market, particularly with regards to food. It also allows us to expand the coffee menu with different price points,” Abrahams explains.

COMPLEMENTING EXISTING BUSINESS Many of the Shell service stations are home to Shell Select convenience outlets which offer 24 hours, seven days a week shopping accessibility. Select stores carry a range of standard grocery items and stock the leading brands so that you are guaranteed to purchase fresh, quality products. There’s also regular promotional offers that are always worth keeping an eye on.

Interestingly, Abrahams says that since rolling out the Vida e Caffé outlets, the purchase of other groceries and related products has increased.

“Where we’ve put in the coffee shops, we’ve seen the basket size in the store

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increase and we’re also seeing an uplift in fuel volumes because we’re attracting a different kind of customer. The customer has time to spend in the shop whereas before customers might have just come for a ‘fill and go’. Customers in general are spending more time on the forecourts.

“The good thing is that because the Vida e Caffé brand is so strong with local market, they’ve also developed a good fresh food range with sandwiches, rolls and baguettes and that’s appealing to the on-the-go consumers. If you look at the growth of the food category which has come with the Vida e Caffé experience, it’s absolutely phenomenal,” he says.

Vida e Caffé in Shell Select stores, the same as in its own stores throughout the country, offers a full serve barista style sales model. This strategy has proved hugely popular in other parts of the world and it’s no different in South Africa. However, Abrahams is also keen to explore a self-serve model to again cater for a different segment of the market.

“With Vida e Caffé, their traditional model is a full serve barista model and that’s what we’ve got across the network.

For other sites, where you wouldn’t traditionally have a full serve barista coffee offer, we’re also looking to develop a selfserve offer – take a look at Shell sites in the UK; they all have Costa Coffee but they are all self-serve.

“The full serve model makes sense as we’ve also got bakeries in our stores and with an energetic barista and freshly baked goods, the customers are very well catered for,” he says.

RAMPING UP THE ROLL-OUT With over 100 Shell forecourts already home to Vida e Caffé outlets, the country’s leading fuel supplier has plans to continue rolling out the partnership with a targeted approach for the rest of the network.

This means there could be potential for hundreds more Select stores with quality coffee.

“We’ve taken a phased approach through segmentation; we’ve looked at where coffee would make the most sense, looking at national routes, looking at

where the busiest sites are in terms of commuter traffic and what the basket sizes are, and we’ve rolled out there first.

The rest of the network is soon to follow,” says Abrahams.

It is these offerings at the retail network that help set the business apart from its competitors (of which there is many) as the nature of the market for fuel in South Africa means that drawing people in with cheap fuel is not an option.

“In South Africa, the fuels market is regulated so the pump prices across all competitors is the same and this makes it difficult to attract new customers apart from making sure that you have a very strong brand and that you can leverage your global assets. We’ve got a 113 year heritage in the South African market and some of our other strong assets are our partnerships and fuel endorsements. We’re a technical partner to Scuderia Ferrari and that’s a long-standing relationship which has been going on since the 1960s and this reinforces the high quality fuels perception,” says Abrahams.

POWERFUL PARTNERSHIPS Away from coffee, Shell’s fuels are recognised as being the best in the world.

Along with the Ferrari partnership, the company recently built a relationship with BMW – another company with a long and illustrious history in Southern Africa.

In the summer of 2015, to celebrate the relationship with BMW, Shell held a giveaway competition, offering five BMW 3-series to five lucky winners over five weeks.

“Last year, BMW M-power endorsed the Shell V-Power Nitro+ fuel and our competition was an extension of that partnership where we launched the BMW relationship in South Africa,” says Abrahams. “It had a fantastic response from consumers as the BMW brand also has a strong heritage in the SA market and is seen as an aspirational but achievable brand whereas Ferrari is perhaps out of reach of the ordinary South African. We rewarded our loyal customers with the chance to win a BMW and that celebrated the fuels leadership relationship with

SHELL SOUTH AFRICA

them.

“We’re partnered with one of the strongest coffee brands in SA, we’ve got a BMW endorsement for our V-Power fuel, so you can see that we’re starting build a very strong and compelling CVP both instore and on the forecourt,” he adds.

When people hear a name, they conjure up a set of impressions that influence how they think and buy, and those thoughts define a brand. All of the hard work being done by Shell in SA, building partnerships, innovative marketing and offering quality service to customers, contributes to the building of a brand that holds significant weight with consumers all over the country and further afield.

FOOT ON THE GAS As a global company, headquartered in the UK and the Netherlands, Shell is constantly on the growth path. Currently, the growth and investment situation in the energy

industry is not conducive to large scale advancement thanks to slumping oil prices but nevertheless, Abrahams is confident about the future of the South African market place thanks to an emphasis on investment into both new and existing infrastructure.

“Obviously, we’re looking for opportunities to grow all the time, particularly as South Africa has a growing population and a growing economy. We’re certainly looking to expand and also reinvest in the existing network so our strategy is to look at how we can enhance the offers at the existing sites and make sure that the customer experience is great at those sites and also maximise the customer experience on the motorways where we have a very strong presence.

“South Africa is seen as one of the growth markets for the Shell group,”

he says. “The group has taken a longterm view on the future of South Africa and recognised that this is one of the markets that is going to be seeing growth in the longer-term and where it can see a good return so the investment is definitely there.

Given the fact that we have invested in the network already, we’ve shown that that is helping to sustain the business within the country. With putting in new coffee, re-doing 104 shop formats last year and offering quality fuels, we’ve ensured that our customers keep coming back,” he concludes

SHELL SOUTH AFRICA +27 11 996 7000 info@southafrica.shell.com southafrica.shell.com

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2016/05/31 8:32 AM

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,

VIDA Ε CAFFE

Charged for

Growth PRODUCTION:

Delivering top quality coffee to millions of South Africans since 2001, Vida e Caffe now has a network of more than 180 outlets. With this number set to rise in the future, even with fierce competition entering the market and global coffee prices looking more and more uncertain, Vida has an extremely robust business and is an example to follow for any customer focussed start-up.

Globally, the coffee industry //has taken something of a hit in recent times. Thanks to climate change, uncertainty in commodity markets and the inability of suppliers to meet the ever-increasing demand for quality beans, the industry has seen input prices rise. Like any business, when this happens our coffee shops are forced to pass the increase in cost on to their suppliers or to the consumer, and inevitably this means people will tend to Ιοοk at alternative, cheaper ways to get their caffeine fix.

Coffee is ubiquitous; some say that there's no other beverage in the world that has the same respect and reverence. ln 2011, some estimates suggested that coffee was a $100 billion industry.

Some research even suggests that coffee

is now the second most sought after commodity in the world, after oil. So how do you go about managing the costing problems that arise from high demand and Ιονν supply? How do you continue to grow? How can you always meet and exceed the quality expectations of customers? You have to ensure your business case is strong and well-planned and that is exactly how Vida e Caffe (Vida) has managed to not only survive but thrive and expand in these tough times.

"The SA Rand is currently not the strongest currency and when your input components come from South America and you've got such a weak currency, it does make life difficult;'explains Vida Group Marketing Manager, Nick Smuts.

"When you do the kind of quantities that we do, it has a massive effect on the

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BUSINESS PROFILE

bottom line. There’s been some bleak harvests in South America recently so the quality of bean hasn’t quite been as good as we’d hoped.

“In order to ensure that your roasted product and in-cup quality that you’re serving to your customers is as good as they’ve become accustomed to, you have to make sure you find the best possible beans and when there’s a low supply of that top quality and a high demand, it’s basic economics – the price is much more difficult to make viable. Ultimately, we have to either look at it as a short-term thing and the business has to absorb it, or we have to pass the costs on to the franchise network, across the supply chain, or directly through to the consumer so it’s a difficult thing to manage.”

But even with these macrochallenges, Vida has plans for further

48 / June 2016 / www.enterprise-africa.net

growth. This is not a business to rest on laurels; in fact, Vida has secured a partnership with Shell to open outlets on forecourts around the country and this is alongside an ongoing roll-out in traditional locations and business centres.

STILL GRINDING “We have a new store roll-out plan that’s due to commence in the next few weeks and that’s predominantly in the Shell forecourts. We’ve got about 30 stores planned this year on Shell forecourts and an additional 10-15 planned on the high-street,” says Smuts. “A large percentage of these will be in corporate spaces. For example, we’re opening a second branch in the Foschini Group headquarters in Cape Town. We’re also opening another store in the KPMG headquarters and this is indicative of

our growth – it will be less and less on the streets and in malls because we find those areas much more competitive and expensive.” Of course, where there are big mall developments, Vida sees an opportunity for consumers to engage with the brand but they have to be attractive from a financial perspective.

Adding to the companies impressive portfolio at home in South Africa, Vida has also ventured into the exciting markets further north where growth levels are high and first-mover advantages are there for the taking.

“We’ve opened seven stores in Ghana, we’ve got five in Mauritius, two in Kenya, two in Namibia, two in Botswana and we’re looking at Mozambique and Nigeria. On the continent, growth is very exciting for us. We’ve been in Ghana for only two years and already have seven stores and that’s quite significant growth

VIDA E CAFFÉ

//I LIKE TO THINK THAT COMPETITORS ARE PARTNERS IN DISGUISE// given that these places can be relatively under-developed,” says Smuts.

“We teamed up with a growth partner. It’s a listed company that has about 400 restaurants or FMCG outlets across Africa and the UAE and they have a stable of QSR brands and whenever there’s a new mall or business park, they’ll go in and put in us and one or two other brands. In each of the emerging economies, they have in-country resources already established and that makes rolling out the businesses faster and easier.

“Expansion plans off the continent are probably not likely for the next five years but it’s certainly something we would be interested in when we’ve

established ourselves further in Africa,” he adds.

The reason why Vida has managed to grow and take on new markets is partly down to its heritage. A South African brand that was born and bred in Cape Town, Vida’s values are 100% SA and commitment to building the brand at home has provided the springboard for international expansion.

FULL OF BEANS SINCE 2001 “The company was founded in 2001 so this is our 15th year,” says Smuts. “It was founded by Rui Esteves, that’s where the Portuguese heritage comes from, and his partner Brad Armitage. They opened the first store in Kloof Street in Cape Town.

They had previously owned a coffee shop in Durban and when they sold that, they bought with them their six baristas.

The first coffee shop had a nice vibe and the charismatic, eccentric baristas.

We became one of the pioneers in the speciality, high-street espresso bar coffee culture in South Africa.

“We also have a range of food that compliments a coffee shop; everything from muffins and confectionary through to sandwiches, wraps and salads.”

After running Vida for five years, Esteves and Armitage accepted an offer from one of the franchisees who was a JV partner at one of the stores in Cape Town. They left the business in the safe hands of two driven entrepreneurs. “The new owners William and Grant Dutton went on a growth drive and wanted to roll out nationally and over the last ten years it’s been a family run business

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BUSINESS PROFILE

with Grant as CEO and William as COO. They grew the business from five stores in 05/06 to around 120 stores when they exited as shareholders and senior managers in 14/15,” details Smuts.

“Today we have 180 stores and the business is majority owned by a private equity firm along with some smaller shareholders.”

It is this historic success that has positioned the business in such good stead today and right now is an extremely important time to be strong as there are some big names starting to make moves in the industry.

HIGHLY CHARGED COMPETITION In London, New York, Barcelona, Paris, Sydney or most other major economic hubs, coffee is a staple. It’s just part of the scenery; people include it as

50 / June 2016 / www.enterprise-africa.net

part of their routine; it’s become the norm. ‘Coffee culture’ has strong roots.

The likes of Starbucks, Costa, McCafé, Dunkin Donuts, Caffé Nero, Caribou, Tim Hortons etc are some of the most recognised brands around, and when they make moves in market people take notice. Starbucks, probably the biggest of them all, made its move into SA recently but instead of feeling threatened, Smuts says that competition from international brands brings welcome attention to the industry.

“It comes with positives and negatives,” he says. “It means that the international competitors come with their brand equity clout – when they arrive, they arrive with a bang.

Starbucks has 22,000 outlets globally and is probably the name in coffee

shop franchising. I think that South Africans are protective of their local businesses and the big names coming into the industry brings attention and where there’s attention on the industry, there’s mentioning of us.

“I like to think that competitors are partners in disguise. It brings conversation around the industry and converts people who were previously not coffee drinkers and we can convert them into our own consumers.

“Franchising has come on leaps and bounds recently and the coffee industry has grown massively in the last five years with Starbucks, Krispy Kreme and Dunkin Doughnuts all entering the market. It’s going to be an interesting time for local businesses.

“There are coffee franchises that have been around in SA for longer than

VIDA E CAFFÉ

Vida and some of those have strong brands but in terms of trendy high street espresso culture, I don’t think anyone else is known for it as well as Vida. We try and replicate what you might find in Las Ramblas in Barcelona or in streets in Italy and Portugal.

We are not a large format sit-down restaurant; we have smaller, more intimate coffee shops.”

TARGETING DRINKERS As competition grows, and as Vida continues to roll-out new stores, marketing and PR will become more important than ever as more businesses vye for market share. Vida already has a strong brand and a loyal customer base thanks to a strong product range but the company has no plans to relent when it comes to putting the name out there and Enterprize Africa_Half page targeting a range of customer profiles.

“The youth are a big part of

positioned to continue its dominance of our market strategy and our brand the high street, espresso bar style format ambassadors serve the purpose of trying in southern Africa. Vida coffee is some to generate content for social media. Do of the best out there and, despite the we predominantly target the youth? No. imminent arrival of more international our consumers are generally between coffee chains, it looks likely that this the ages of 25 and 45 and that’s a young South African success story will endure market but it’s not 18-30. I’d also like to and continue to create jobs, create trade target an older generation and we hope and create beautiful coffee that fuels joy to bring in new brand ambassadors and pleasure. who are doing positive work in the Starbucks has a 45 year history, Vida entrepreneurial space and the social has just 15. Given that the industry has upliftment space,” says Smuts. seen a 7.1% increase in income since “Because of the nature of our 2014, what sort of height can Vida reach locations, on business parks and in high in the next 30 years? streets, we also get a lot of people having business meetings in our stores and visiting on their way to work. I’d like to think we actively target the full spectrum VIDA E CAFFÉ of the 25-45 age bracket,” he adds. +27 21 461 0424 With such a strong store-network @vidaecaffe around South Africa, and also in Ad_FA PRINT_2016.06.01.pdf 1 6/1/16 8:36 AM www.vidaecaffe.com neighbouring countries, and with more outlets to come, Vida is perfectly

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www.enterprise-africa.net / June 2016 / 51

WHITE RIVERS EXPLORATION

��we know how to find

worLd cLass

mineraL resources'' PRODUCTION: Headquartered in Johannesburg, with a combined experience of over 200 years in the Wits Basin, White Rivers Exploration is one of the industry leading companies when it comes to exploration and development of quality South African mines.

Last year, global professional // services company, Deloitte, stated that mining on the African continent was a difficult industry to be involved in. "The outlook for growth looks very gloomy indeed;'said Deloitte's State of Mining in Africa report.

"Mineral exploration investment is down approximately 50%, compared to 2012;· the report said. However, the report also suggested that some areas were experiencing continued success in the sector, namely the DRC where four of the top ten major mining projects are located.

But what about South Africa; a country with one of the oldest mining industries on the continent and where mining has been the driving force behind what is now Africa's most advanced and richest economy, after Nigeria?

Executive Director ofWhite Rivers Exploration, Refilwe Monageng tells Enterprise Africa that although the slowing economy is a cause for concern,

his company still has an extremely positive outlook and is planning to continue developing world class African mines in South Africa.

"The slow economy does affect us but there's pros and cons. Firstly, it affects us because we had to reduce some of our geological work as we had to put money into Ιονν capex and quick return projects. Secondly, the slow performance in the mining sector and the economy affects investor confidence and this means that people tend to pull back.

Most importantly foreign exchange works in our favour at the moment looking at the weaker rand compared with the U.S. dollar. One of our aspirations is to find ourselves listed on the JSE one day so investor confidence affects our investor plan in terms of where we need to be by when;' he says. 'Όur mission is to discover world class African mines and we mean it when we say that. There are a lot of assets in South

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BUSINESS PROFILE

Africa that are perfect examples of assets that should be acquired. Take White Rivers for example; we have discovered deposits in abutting the Harmony mine and these are world class – that’s why we formed a JV. There are certainly bankable resources and they result in new mines and jobs created which is good for the country.

“A lot of it is also in how you look for deposits. There’s something called creative difference meaning that everyone looks at the same picture but everyone does not find the same result. What we do, and what makes us exclusive, is use institutional memory. We employ people who have worked in the Wits Basin in order ensure we find the greatest deposits and we critique and evaluate extensively from a geological and engineering perspective.

Our experience shows that we know how to find world class mineral resources.”

//OUR EXPERIENCE SHOWS THAT WE KNOW HOW TO FIND WORLD CLASS MINERAL RESOURCES// HISTORIC SUCCESS White Rivers Exploration is a trusted exploration partner with a track record of success. The company has a substantial tenement holding, the largest land holding in the Witwatersrand Basin, and develops projects from exploration, through concept, pre-feasibility and feasibility studies to the mining execution phase.

“The company was started by one of the most successful prospectors in Australia, Mark Creasy, and he introduced a model that he used in Australia to apply for tenements that would not take long to get into production. A lot of the time, investors

only put money into projects where they can see their returns sooner rather than later and mining always takes longer than one can anticipate,” explains Monageng.

“In 1995, Creasy discovered one of the most successful mines which allowed him to list in the Guinness Book of World Records. The Bronzewing mine was one where people said it could not work and that similar to what’s happening with White Rivers.

A lot of people have said that gold is dissipating and that we would never find anything but our vision, which we believe we are achieving, is to discover world class African mines and we are

//SHANGO SOLUTIONS Shango Solutions is a leading geological consultancy established in April 2004 in Johannesburg, South Africa. It has provided services to White Rivers Exploration (WRE) since 2006. A productive and trustful working relationship has developed over the last 10 years. Shango Solutions was instrumental in creating WRE’s tenement portfolio in South Africa which led to the establishment of one of the largest exploration tenement holdings within the gold rich Witwatersrand Basin in South Africa. These high quality tenements have subsequently led to the joint venture agreement between WRE and Harmony Gold, abutting the Target Mine Operations in the Free State. Currently, the exploration activities focus is on enhancing the value of the joint venture by upgrading the JORC code-compliant gold and uranium resources through a drilling programme.

Shango Solutions strives towards technical excellence through innovation. Thirty passionate employees provide a diverse range of offerings to the minerals industry in South Africa and beyond. These wide-ranging client services, from target identification to technical reporting (see resource value chain overleaf), are supported by: • • • • •

an extensive network of national and international affiliations a core of unique mineral and resource estimation experts; knowledge-intensive databases; more than 500 combined man years of Africa-based, multi-commodity mining and exploration experience; and an established track record of successful project execution, management, including complex multi-disciplinary assignments, involving major mining houses as well as junior exploration companies.

Shango Solutions fulfils its social responsibilities through established community based projects.

54 / June 2016 / www.enterprise-africa.net

BUSINESS PROFILE

continuing to do this. How do we do it?

Through a historic borehole database.

A lot of holes have been drilled by previous companies, such as Anglovaal, AngloGold etc, so with that in mind Mark Creasy established a database in order to ensure that we apply for tenements that he thinks are near to surface or are able to bring required returns,” he says.

Working closely with the Department of Mineral Resources, White Rives has created lasting relationships and has adapted itself to meet the needs of ever-changing regulatory requirements. “Since 2007 until now we’ve run a strong business,” says Monageng.

One of the company’s most successful undertakings to date is work in the Free State on a gold and uranium project that earned national praise.

“One of our flagship projects is the Beisa project with Harmony Gold.

When we started doing research and gaining prospecting rights in that area, we realised that it was one of Harmony’s best mines and it was one of our good grounds, meaning that we could share the infrastructure with Harmony and that’s why we created a joint venture. It shows to any potential future partners of White Rivers that they could realise returns sooner rather than later because we don’t have to spend a lot of CAPEX with regards to putting in a shaft. On this project, we are hoping to declare a resource soon and it will be made public as soon as we have confirmation thereof,” explains Monageng.

//WE WANT TO DISCOVER GOOD ORE-BODY, WE WANT TO UPSKILL PEOPLE AND WE WANT TO MAKE MONEY//

DIVERSIFIED PROJECTS Since White Rivers holds a dynamic and flexible, multi-commodity tenement portfolio, the company is always on the lookout for new opportunities and projects with potential.

Currently, White Rivers is working on projects with various minerals, across different regions, and there are some extremely exciting prospects.

“We have a basket of different tenements. I would say we are a multi

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commodity company; for example, we work with gold, silver, uranium, coal, gas etc so it makes us a very diversified company.

“Speaking about the Free State coal project, it’s lower grade coal so it could potentially be used for the Lethabo Power Station and we’re still in exploratory options regarding people we could JV with. Of course, we could mine it ourselves and find a buyer who is building a power station for lower grade coal,” says Monageng.

“The coal in KZN is exciting because it’s higher grade coal and is close to the port and Richards Bay Coal Terminal.

If it is declared commercially viable, we could potentially export it to other interested countries such as Egypt, Russia, India or China but you have to

look at the economics and the timing to ensure it’s commercially viable.

“We also have an exciting gas project, a JV with Tetra 4 previously Molopo Gas, where will be exploring for gas in the Free State.

“In Gauteng, we have a tenement that looks promising in the diamond industry. There was recently an international diamond conference in Dubai so we would certainly not rule out considering those type of commodities,” the Executive Director adds.

FUTURE GROWTH White Rivers has been specific in its goal: To develop the next generation of world-class South African mines within the next ten years. With that

WHITE RIVERS EXPLORATION

comes the development of not only the business but also people, technology and expertise. The company is now actively looking to build relationships with new partners in the mining sector; relationships where all parties can benefit.

“What’s unique about this industry is that White Rivers is presenting an opportunity to the whole sector and saying ‘let’s talk’. We can be neighbours and talk about how we can be of value to each other and how can we benefit the market,” Monageng says.

Going forward, as the company grows, White Rivers will look to take on more people who have the relevant experience to move the business forward. “Geologists, engineers, environmentalists,” details Monageng. “We have to look after our environment – that is now hugely important. Metallurgists are also important. It’s very important to understand the minerals you are taking from the ground and how is it processed. As we grow and as the

economy changes and bounces back, we will also look at Accountants, Economists and Lawyers. It’s an interesting industry and drives the local and international economies.”

At the end of 2015, the Chief Executive of the Chamber of Mines, Roger Baxter released a report responding to the growing concern over the health of the mining industry.

The report stated that ‘mining helps give us a cleaner future, it gives us energy for development, metals and minerals which are the building blocks for smart technologies, cosmetics and make-up are made from minerals, the world’s famous buildings would not have been possible without mining, even a wind turbine uses a significant amount of metals and minerals, and more than half of NDP priorities can be tackled by mining,’ and White Rivers is keen to help drive the ongoing development of the industry.

“We are in the business of discovering world class gold assets, creating jobs and making money,”

says Monageng. “We want to discover good ore-body, we want to upskill people, address issues of Health and Safety and make money. We are also very concerned about Health, Safety and technology. Mechanisation is becoming popular in underground mining around the world so we will need to train people to maintain the technologies. People can be averse to technology because they think it will take away their jobs but technology can be an opportunity to learn new skills and advance yourself. We are trying to bring a new mind-set through communication. When people are properly informed, they become part of the changes that have to be made,” he concludes.

WHITE RIVERS EXPLORATION +27 (0)11 431 1191 info@whiterivers.co.za www.whiterivers.co.za

www.enterprise-africa.net / June 2016 / 57

CARARA AGRO PROCESSING

Carara’s Little Red Peppers Driving

International Business

PRODUCTION: Manelesi Dumasi

In the quaint and charming city of Grahamstown, in South Africa’s Eastern Cape, an innovative agricultural business has the taste for success and is looking for sustained growth throughout 2016 and beyond.

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BUSINESS PROFILE

//

The export industry is a positive space to be in right now. Thanks to the depreciation of the Rand in international currency markets, South African goods are attractive to foreign buyers and when you have products that are internationally recognised for quality it makes things especially exciting.

Grahamstown-based Carara Agro Processing is a perfect example.

Established 12 years ago, this agrifocused business produces unique food products for export. The flagship product for the company is the cherry pepper. Crunchy and sweet, Carara’s little red pepper has the appearance of a cherry tomato, but with a surprising zesty flavour. Cored and de-seeded,

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its enduring bell-shape, mild heat and crunchy texture make it ideal for stuffing or eating whole. The company also produces other pickled products and sends them out to hungry customers all over the world.

After starting out as a small operation, today Carara Agro has two major processing plants and works closely with farmers to produce quality goods. It’s a classic business case; an example to follow; where all the ingredients for commercial success have been added and developed at the right times.

Managing Director, Mike Duxbury, an experienced farmer originally from Zimbabwe, tells Enterprise Africa that the

company is now looking for new markets and also pushing its new products lines which have so far been very wellreceived.

“The product is very popular and we have expanded. We did 400 tons in our first season but now, in the last two or three years, we’ve been close to 2400 tons. We’ve expanded drastically over the years and now we are at a plateau so we’re looking to add other products to our portfolio. We would love to be able to increase our cherry pepper business by finding new markets,” he says.

“We export 95% of our product. Our biggest market is Europe and specifically Germany. We’ve never explored the Eastern markets so we’re going to a

CARARA AGRO PROCESSING

//WE ENTERED IT INTO THE INTERNATIONAL TASTE AND QUALITY INSTITUTE AND WE GOT A GOLD MEDAL FOR SUPERIOR TASTE// tradeshow in Dubai next year. We believe that there’s huge opportunity in the United States, we have all the relevant FCA approvals for our products, but we’ve had limited success there and we are hoping that we can work there more in the future.

“There is a market in Africa. We’re looking at our smaller lines for the local retail market in South Africa but that is not the main focus of the business.”

GOLD STANDARD The company has been lauded recently for a new product line that is becoming popular in local and European markets.

“We’ve got a gourmet chutney

which we’re pretty excited about,” says Duxbury. “It’s been launched in a supermarket chain in the Netherlands and we believe it is a very unique product with a unique taste. We entered it into the International Taste and Quality Institute and we got a gold medal for superior taste and hope that this will give us traction with customers in Europe.

We sell it in the local market and it’s very popular. The next thing that we’re excited about is roasted vegetables. The first product that we intend to do significant volumes with is a roasted marrow for export.”

All of Carara’s processing facilities are audited and certified by WFSO to

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HACCP, ISO 22000 PLUS ISO/TS 22002-1 standards and products also carry Kosher and Halaal certification. As part of the company’s ongoing focus on excellence, it guarantees products to be consistently top quality, meeting and ensuring customer satisfaction through continual improvement.

Although the company is now seeing success, it hasn’t always been this way and Duxbury and other shareholders had to plan a strategy carefully when the business was in its infancy.

“The majority of the shareholders were ex-Zimbabweans and due to the political situation we were unable to continue there. We had an idea and we bought it with us down to South Africa and we established the company in mid-2004. In 2005, we had our first production run.

“Carara cherry pepper is our main product and that’s been the focus since

5/25/16 10:19 AM

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BUSINESS PROFILE

day one. We’ve slowly added other product lines but the majority of our production is the cherry pepper.

“I’m now the only full-time working shareholder,” he says. “Initially there were four shareholders who came down from Zimbabwe and teamed up with a South African Farmer to set up the factory Carara Agro Processing. We couldn’t keep up with demand so we consequently brought in some other people from Zimbabwe and South African and set up another factory in Natal called the The Natal Pepper Company in which Carara has a 50% shareholding. It’s a similar operation focussing predominantly on cherry peppers.”

CYCLICAL BUSINESS & CYCLICAL ECONOMY As mentioned, the economic situation

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in South Africa right now, with depreciating currency, means that exports are very attractive in foreign markets. According to SARS, total exports from South Africa increased by 6.3% to R96.1 billion in March of 2016. However, this has not and will not always be the case.

“It definitely helps us but things go in a cycle and when the Rand strengthens again we can end up in a totally different situation,” explains Duxbury. “At this stage, the long-term trend for the Rand is weak and that is good for us but it’s unlikely that we’ll get a price increase in Europe as there’s huge pressure on food prices. Inflation here is at least 10% with our costs and that comes out of the devaluation. At the moment it’s favourable but things change very quickly.”

Because of this uncertainty, Carara has to be efficient and well-organised.

“Our target is to boost or business during our ‘off season’,” says Duxbury.

“We will continue to invest in our facilities and build relationships with our partners so that we can grow.

As we explore more markets, our output will grow and that will mean that we will have to invest more and that’s something we are happy to do.

Our ultimate vision was to become recognised worldwide as a top quality, reliable and consistent producer of cherry peppers and other pickled products and I believe we are now there.”

One area where organisation can become complex is with staff.

Grahamstown has a population of around 70,000 people and in season,

CARARA AGRO PROCESSING

Carara employs in excess of 1000 people (across the Carara group inclusive of seasonal farming jobs the business has created close to 6000 seasonal jobs).

While this gives management things to think about, Duxbury says that effective management is key to the success of the business.

“We contract farmers to produce all our peppers. We don’t get involved in growing the peppers apart from providing an extension service to farmers for basic assistance and monitoring. Carara’s focus is primarily on the processing, packaging, storage, dispatch and delivery of our products to our customers around the globe.

“The levels of staff we employ is a challenge and that’s where the success of the business lays,” he says. “If you can manage and motivate a happy

workforce you’ll be successful and if you can’t then you’ll quickly fail.”

Carara sets out its stance when it comes to its employees in its ‘company values’ where it states: ‘We develop an environment in which our employees can experience involvement that matters, accountability for problem solving, creativity and decision making so as to add value to our company. We maintain the highest possible standard of safety and health in the workplace environment’.

Success with employees is hugely important in the South African agriculture sector, a sector that has had its fair share of problems in the past few years. Fortunately, through successful management and an unwavering drive for quality, Carara has laid the foundations for a business that will

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continue to thrive in the future. Product, promotion and people are all on point – now it’s just a case of maximising. Carara cherry peppers are helping to build this important business and ‘whether you slice them, dice them or stuff them. Be creative. No gourmet platter is complete without them’

CARARA AGRO PROCESSING +27 46 6228765 jess@carara.co.za www.carara.co.za

Proud supplier to Carara Agro In collaboration with our clients we recognize their goals and at Aximus we aspire to ensure they yield results.

Transport we do every day, our progressive thinking is what produce value added service to our customers.

021 853 1490 Contact us on +27 41 365 3320 - or e-mail johan@aximus.co.za for prompt response.

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www.enterprise-africa.net / June 2016 / 63

TRANS-TECH LOGISTICS

The Pioneer in Cross

Border Transportation PRODUCTION: Manelesi Dumasi

Trans-Tech Logistics moves a range of different products, for a range of different industries, all over sub-Saharan Africa. With a large, high-tech fleet, Trans-Tech is now one of the most trusted and respected logistics companies around.

64 / June 2016 / www.enterprise-africa.net

BUSINESS PROFILE

Trans-Tech Logistics is connecting the African continent. This logistics and heavy haulage specialist has the skills, experience and expertise to suit the needs of any client; big or small, and after opening its doors almost 20 years ago, Trans-Tech Logistics is now one of southern Africa’s industry leaders.

Offering comprehensive, integrated and total freight transportation solutions from collection, clearance and delivery, Trans-Tech conveys all kinds of cargo including break bulk, containerized, hazchem and abnormal freight. Products regularly

carried include food, agricultural chemicals, farming implements steel, fertilizer, maize, groceries, cotton, tobacco, timber and grain and several more.

Originally founded in Malawi in 1997, Trans-Tech has been run successfully by Managing Director, Ufulu John Loga. He tells Enterprise Africa that, conditions allowing, the company will continue on an accelerated growth path.

“We have around 140 people and 100 trucks in our fleet. We do have plans to expand this further in the future but of course this will depend on the economic situation.

“Our growth is dependent on the economic situation. We have seen reductions in spending from some customers because of the economic uncertainty in South Africa but we have managed to remain successful thanks to our versatility, operating in different countries and different industries.”

But despite slow economic growth rates and the bleak outlook for the short to medium term, the position of the industry remains stable and looks relatively good for the long-term.

Global professional services firm, PWC, said in a recent report titled

//GLOBALTRACK SAVING COSTS FOR THE AFRICAN TRANSPORTATION INDUSTRY We are so much more than a vehicle and asset tracking company. We aim to connect the African continent in ways beyond the norm, ensuring that transporters are connected quickly and efficiently.

This goal inspires Globaltrack to create new ways in which transportation can be made faster, cheaper, and ultimately more efficient.

Our beautiful content, Africa, is one that’s image is tainted by increasing amounts of crime and famine.

There is no doubt that the African economy has taken strain over the past few years. It is becoming ever increasingly difficult for businesses to cut costs, and unfortunately, many businesses have crumbled under the brunt of this pressure.

Everything needs to be transported, from the point of manufacture to the point of sale. But for those who cannot afford it, the costs are calamitous.

This is a vicious circle of increases that is no benefit to businesses or consumers. As transportation costs increase, the basic cost of living inevitably increases too.

Unfortunately, the only way businesses have managed to stay afloat is by passing these costs onto the consumer.

This may seem necessary and unavoidable, BUT IS IT? Globaltrack’s answer is NO. Transporters can CUT THE COSTS of their operations tremendously,

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saving thousands to millions each month, by using Globaltrack’s simple to use solutions.

One such solution is the Globaltrack FUEL SOLUTION. Our tried and tested Fuel Solution with Fuel Probe has helped hundreds of businesses cut the costs of their operations, saving millions each month and helping them to avoid passing costs onto the consumer.

The easily installed Fuel Probe is installed directly into your tank by our trained professionals. Once operational you are able to monitor your fleet’s fuel consumption anywhere in the world on our web-based application Webtrack.

Our fuel solution helps transporters to monitor: •

Fuel Theft

•

Fuel Usage

•

Fuel Contamination

•

And Many More…

But most importantly, you can rest easy knowing that your massive saving each month will not have to affect those who need it the most.

For more information about Globaltrack’s Fuel saving Solution, and more products and services, visit www. globaltrack.com Call us on +27 11 262 6545 or email info@globaltrack.com

RAMPION & ARKONA WIND FARMS (E.ON)

BUSINESS PROFILE

‘Africa Gearing Up’ that: “African logistics stands for the chance to build tomorrow’s markets. And while tomorrow is still uncertain, logistics strategists can’t afford to ignore the African market of the future.

“One of the most important factors in Africa’s future development will be increasing cross-border trade.”

And it’s this ‘cross-border trade where Trans-Tech really sets itself apart.

“The company was formed in 1997 in Malawi and we opened our office in South Africa three years ago. The reason for this is that we wanted to bring operations under one umbrella as previously we were dealing with brokers,” explains Loga.

“We are well versed with cross border regulations and policies and that comes from our experience which is something that not all other companies have.”

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With Africa becoming more connected than ever, this knowledge is hugely important but it’s also significant to remember that Africa is made up of 54 different nations with many different languages and cultures so movement across borders isn’t always easy and a sound understanding of the legislation goes a long way.

As one of the largest and wealthiest economies in Africa, South Africa represents a huge opportunity for transporters.

The road network is good and the supporting transport links, such as air and train, are well established and the largest on the continent. South Africa also has good relationships with the rest of the world in terms of exporting.

Importantly, more than 75% of manufacturing firms in South Africa

export to African countries and the government has announced big spending plans in the infrastructure sector meaning that there are huge opportunities for cross-border logistics companies like Trans-Tech.

Interestingly, Loga suggests that Namibia and Zambia are target markets for Trans-Tech. these markets have been identified by a number of logistics firms as target regions because of the big projects that continue to be announced in the mining and minerals sectors Already well-versed in a number of sub-Saharan African nations, Trans-Tech utilises state-of-the-art technology to ensure customer satisfaction.

“We currently work across Malawi, Zimbabwe, South Africa, Mozambique and the east of Zambia. We would like to expand in the future and work across the rest

TRANS-TECH LOGISTICS

of Zambia and also Namibia.

“Today, we have one of the largest and most advanced fleets in Malawi. Because of this, we take a big share in the market,” says Loga.

All Trans-Tech vehicles are fitted with real time Web Track GPS & Satellite Tracking Systems from Global Track meaning that journey progress can be tracked at all times and the client can keep a close eye on their cargo, receiving warnings if there is a breakdown or any other serious problem such as a security situation.

Trucks are also equipped with specialist monitoring and communication technology to ensure that the company and client can remain in constant contact with the driver, sharing information about their route and the condition of the cargo.

Giving further assurances to

clients, Trans-Tech ensure that all vehicles are serviced regularly at state of the art service centres in Johannesburg, Lusaka and Lilongwe. “All our drivers have 24 hour telephonic access to our workshop staff and all trucks in transit, with mechanical defects, are attended to by one of our partners depending on their location.

No truck is allowed to leave our premises without a standard mechanical roadworthy check,” explains Loga.

Carrying around 30 tons, TransTech vehicles are active across a range of industry sectors and move goods of varying nature.

“We move food, agricultural chemicals, farming implements, steel, fertilizer, maize, groceries, cotton, tobacco, timber, paper, grain and many other goods. Our product portfolio is diverse and that helps

us gain new business and spread risk,” says Loga.

Only three years into its journey in South Africa, TransTech has a long road ahead and with the investment climate in the sector, according to PWC, looking extremely positive, it looks likely that Trans-Tech will prosper in the future. This is a certainly a company in pole position and as growth on the continent continues, TransTech will be there to drive business forwards.

TRANS-TECH LOGISTICS +27 119631238 francis@transtechlogistics.co.za

www.transtechlogistics.co.za

www.enterprise-africa.net / June 2016 / 69

OSMOND LANGE

Connection

by Design

PRODUCTION: Colin Chinery

With origins dating back to 1929, South African architects and planners Osmond Lange combines maturity of reputation with 21st century style and a striking understanding of contemporary needs and aspirations. “We are still a very unequal society, so it’s incumbent on us as architects to try and contribute to the public good,” says Group Managing Director, Jonathan Manning.

//

If the falling Rand is a key issue for leading South African architects and planners Osmond Lange, the order book of the Johannesburgheadquartered group is delivering a notable buoyancy. “We are very busy – yet to see much of impact of the much talked about economic doom and gloom supposedly gripping South Africa,” says Group Managing Director Jonathan Manning.

87 years and several titles in the making, Osmond Lange has grown an impressive portfolio ranging from airports and stadiums to residential; education and healthcare to industrial. “With just about any building type that has been built we have a history and a strong track record.”

Melrose Arch – voted ‘The place to see and be seen’ for eight consecutive years by

Leisure Options Readers Choice – is one high profile Osmond Lange project. And in the same city, Johannesburg’s Bus Rapid Transit System (BRT) is another.

“Among the larger practices I would say we are fairly unique in that we have close to a 50-50 split between private and state sector work,” says Manning.

NEEDS AND ASPIRATIONS It’s a mix that not only provides a compensatory balance in a time of economic uncertainty, but also a synthesis of inter-sectoral needs and aspirations.

“It gives us an understanding of the dynamics of each, a product that is marketable and fits the client’s financial parameters, and blending it with a strong sense of social responsibility.

“And this is particularly important

in the social and political context of this country and continent. We are still a very unequal society, so it’s incumbent on us as architects to try and contribute - even when working for a private client worried about the bottom line - to the public good, creating public spaces in South African cities and towns that ordinary people can use; spaces that are more open and more appealing and integrated than they were in the past.”

Jonathan Manning took over as Group Managing Director in March 2013 with three strategies in place; transforming the team profile to one better fitting the country’s demographic profile and an increasingly diverse client base, and secondly to upskill and upgrade Osmond Lange’s technological capabilities.

The third was broadening the

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BUSINESS PROFILE

//WE ARE FAIRLY UNIQUE IN THAT WE HAVE CLOSE TO A 50-50 SPLIT BETWEEN PRIVATE AND STATE SECTOR WORK//

Group’s geographic footprint. This year it opened a Cape Town office (besides the Johannesburg head office, there others in Durban and East London) and associations have been established with synergycompliant practices in seven African countries; Ghana, Nigeria, Kenya, Tanzania, Namibia, Zimbabwe and Mauritius.

“Kenya and Ghana in particular are yielding a lot of leads for us at the moment, with some very large potential projects we are actively pursuing. I think this is the future,” explains Manning.

“And it’s not necessarily about copying and pasting what we have done in South Africa. You have an increasingly intelligent and informed market across sub-Saharan Africa with high expectations around quality. It’s also about local knowledge, which is why we have opted to build relationships with local practices that can spot opportunities and bring them to us.”

Some of the mega projects around the continent, says Manning, “can be smoke and mirrors; a master plan launch and a website and colourful brochures before there is a business model.

“This is often where we’ve come in and try to inject a degree of sanity, and say ‘let’s run a cost and financial model on this

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and identify which are your low-hanging fruits we can push early to get critical mass and momentum’.”

Among its biggest private sector clients, Osmond Lange has noticed a more tentative approach. “We do a lot of work for Mercedes Benz in the Eastern Cape for example, and there we have suddenly seen a lot of projects being put on hold, further rounds of investment are being delayed but – interestingly - not often cancelled.

“So a lot of the bigger multinationals are playing a game of Wait and See. They are also looking to see if the rating agencies are going to downgrade South Africa to junk status, which may affect how the big international funds use South Africa’s investment destination, and ultimately affect how easy it is for some of the big companies to source debt.”

But on the state sector side, the Group is experiencing what Manning describes as “a real push.” Examples include two major hospitals in Johannesburg - a city with which it has a long-standing relationship including the BRT project – while a sister company, Ikemeleng Architects, is currently undertaking a R1.1 billion mixed use

development in Rustenburg in the Bojanala Platinum District Municipality, North West Province. “So there’s quite a lot of exciting stuff happening in the State sector.”

Airports are another dynamic niche, with Osmond Lange the architects for Durban’s greenfield King Shaka International, and in the last round of major upgrades for Johannesburg’s OR Tambo International new central terminal. The group has also been shortlisted with Kenyan partners, Waweru and Associates, for a bid for an airport city development at Kenya’s Jomo Kenyatta International Airport.

“This would be a very interesting project to be involved in,” says Manning.

STYLE WITH RESPONSIBILITY Combining modernism and green design innovation, Melrose Arch, the stylish urban precinct in Johannesburg’s northern suburb, is the Group’s flagship project, typifying the blending of architectural approach with social responsibility.

“It’s been a bit of a game changer in South Africa over the last 20 years, more aligned to the kind of project you can see in Europe where there’s far

OSMOND LANGE

more of a drive to integrate retail, office and residential in a single or holistic environment.

“The typical typology here in South Africa is to have a retail mall on one site and a fenced-off office park next to it with a further fenced-off residential development down the road, compelling you to drive out through a security gate to get to each component.”

With smaller versions now across the country now, integrated mixed-in developments with live-work-play environments, Manning describes Melrose Arch as “semi-unique.

“I think we’ve got the most expensive square metre residential property prices in the country, maybe number two to the V&A Waterfront in Cape Town but certainly in Johannesburg - and that’s on the back of being a very desirable place to live, with all the amenities.

“Likewise with the offices; I think for a long time they were getting the best rental rates per square metre in Johannesburg. And it gets us a lot of business. People are walking in the door saying they love Melrose and want something like it in their project.”

As a result Osmond Lange is now talking to two project developers, one in Cape Town and another in Ghana, where the promoter enthused “I love this; I want you to come and build a Melrose Arch in Ghana.”

But with the economy stuttering says Manning, it’s “quite difficult to punt mega projects. It’s all about patience because the demand will pick up eventually.

ENEMY NUMBER ONE “Often it’s the very common Afropessimism that’s our biggest enemy.

And it’s especially a problem here

in South Africa where we have an incredible capacity to talk ourselves down and force ourselves into panic, even though the fundamentals remain sound. In Asian countries I visit, the glass is always half full; here it’s half empty.

“If we project a pessimistic and disbelieving outlook to those outside the country we can’t blame them for not wanting to put money here.

“The political situation will sort itself out. After the ANC Electoral Conference next year, we will know where we stand, and I think the market will adjust to that.”

OSMOND LANGE +27 11 994 4300 @OsmondLange www.osmondlange.co.za

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www.enterprise-africa.net / June 2016 / 73

Unparaιιeιed Range for Consumers PRODUCTION:

From its humble beginnings as Kit Kat Cafe back in 1953, then located in South Africa·s old Asiatic Bazaar, today Kit Kat Cash and Carry spans some 20,000 square meters and comprises three floors, offering goods ranging from groceries and crockery to electrical and sports equipment.

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BUSINESS PROFILE

//

The story behind Kit Kat Cash and Carry’s success has been a gradual evolution from its café beginnings into the stores it possesses today. The first Kit Kat Wholesalers opened in 1983 in the Asiatic complex, and quickly required expansion into a Hyperstore in Schubert Street in 1989. In 1992, meanwhile, came the first incarnation of the Cash and Carry itself, a 1500 square meter plot equipped only to stock non-food items. The opening in 1999 of the Kit Kat Cash and Carry in Pretoria West spelled the culmination of generations of focussed hard work,

76 / June 2016 / www.enterprise-africa.net

with its basement, mezzanine and sales floor each laden with an everwidening array of goods.

Among the principal aims of the company is to maintain the unparalleled value for money it can currently offer, while continuing to expand the range of products available to its customers in a cost and time-effective shopping experience. To this end, the store’s many sales assistants and cuttingedge computer points serve to deal with all manner of customer queries and thus make the experience all the more customer friendly and easily completed. The first of Kit Kat

Cash Carry’s new era of locations has since been joined by a further two in Silverton and Kliptown, and the company has also looked to further develop the concept of ‘one stop shopping’. Fast food outlets, shoe shops, fruit and vegetable and interior decorating shops have all been added, as Kit Kat Cash and Carry seeks to best cater to the ever increasing needs of the public it serves.

A big development for the Kit Kat Cash & Carry group came in August of last year, as it announced its decision to change warehouse equipment supplier to Goscor Lift

ΚΙΤ ΚΑΤ CASH AND CARRY

Truck Company, part of lmperial's Goscor group, having been with another leading supplier for more than the last decade. This is in line with what is a never ending quest for reinvention, and a maximising of the effectiveness of its operations.

There is a total of 28 Goscor units in the Kit Kat group's arsenal, including reach trucks and pallet trucks, and Kevin Fry, GM Kit Kat Pretoria West, says that in the end, the decision to change suppliers came fairly easily.

"We have always admired the quality of Goscor's range of warehouse equipment," he states.

"Crown in particular is absolutely top draw in terms of its technology, reliability, innovation and durability and we have had our eyes on this brand for some time, and their pricing and overall cost-structure is very competitive, which will help us achieve a very efficient life-time cost on the machines."

What has grown to become a world-wide popularity of the Crown ESR 5000 Series of reach trucks is down to a combination of first class design couple with superior operator comfort and exceptionally practical features. The ESR 5000 Series of reach trucks was developed in Europe and is manufactured at the company's Roding plant in Bavaria, Germany.

Having experienced phenomenal success with many major customers in Europe, the ESR 5000 is now winning over South African customers, and Zeyn Alli, Regional Sales Manager, explained that: 'Ί have worked with Kit Kat for several years now and they are a most professional group. 1 am proud that they have chosen to continue working with me at Goscor."

The most recent report by PwC on the South African retail and consumer products outlook held much positive news for the sector as a whole. The perception of Africa has been buoyed by a strong decade, with the continent's collective

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GDP expected to grow by US$1tr by 2020, a rise from US$1.6tr in 2010. Furthermore, the Economist lntelligence Unit forecasts real GDP growth of 4.9% from 2012-16, which is well above average world growth.

South Africa is leading the way in this turnaround, already the biggest retail market in sub-Saharan Africa and the 20th largest in the world, with a wide array of shopping malls and retail developments contributing alongside a significant food and non­ food manufacturing sector. Measured by volume, sales are expected to rise by an average of 2.9%, and by value sales will expand at an

average of 7.85% in nominal terms.

The emergence of a middle class with modest, but rapidly increasing disposable income, accounts for a growing proportion of this uptick, and is now generating substantial consumer demand for retailers and consumer goods companies across the board. ίΏ

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78 / Issue No.14 / www.emea-energy.net

TRI-STAR CONSTRUCTION

A Formidable Force in the Construction Industry PRODUCTION: David Napier

Keeping one eye on the economic situation in South Africa, Tri-Star Construction is enjoying ongoing success, working on impressive projects and developing a quality workforce from within. This is one construction company for which the future looks particularly bright…

//

Just 12 months ago, in mid-2015, the Financial Mail described SA’s construction sector as being in a ‘parlous state’.

Unrest from employees in the sector, slowdowns on major national projects, falling stock prices for the major players, energy related problems and worries over the economy have all contributed to a rather drab outlook.

But nevertheless, the construction sector has rolled on, and the demand for quality work has continued. In fact, at the BAUMA 2015 CONEXPO AFRICA, despite the situation in the industry, Gauteng MEC for Economic Development, Environment, Agriculture and Rural Development, Lebogang Maile said that the construction sector was a ‘treasure trove’. So which is it?

Should our construction firms be worried? Or are they in a sector that will always hold the key to development?

Enterprise Africa asked Frans Maartens from Tri-Star Construction and he explains that while there is certainly an element of slow growth in the sector, if you position yourself correctly and create a sustainable and effective

business plan, you can certainly achieve success.

“The market is tight and it can be challenging to fill your books. Our bread and butter is large construction projects and they are very dependent on the economic outlook,” he says. “Picking up work on an open tender basis is becoming more challenging but we are fortunate to have a decent amount of work on our books. We have a lot of partners who prefer working with us and that helps.

“We are not a listed company so we are not in the market to undertake big mining or industrial works but as a contractor we can do work up to R1 billion. Recently, we’ve done work ranging from R10 million to R800 million so we operate across a large spectrum and this benefits us as it means we are a little more diverse in our skills. The big players won’t take on smaller jobs but those smaller jobs can carry you in tough times so I think we’re in a good space. We can mix with the big boys if needed but we can also scale down to take the smaller work when necessary.

It’s a better space to be in rather than

just depending on massive projects or small projects.”

A DECORATED COMPANY Tri-Star has a long and illustrious history.

Its roots go back to Gauteng in the 70’s when it was established as a small painting and decorating concern.

“The company started back in 1979.

Billy McNeil and Derek Wheals, were involved in that company as employees.

The company existed as a very small operation form 1979 until 1997 when Billy saw an opportunity and bought the company with Derek. This was then the company got the spark that turned it into what it is today,” explains Maartens.

Today, Tri-Star has four divisions providing a strong portfolio of services to the construction industry.

“In 1998, the housing division was initiated. In 2005, we opened the plant and equipment division. In 2006, the holdings company was created. In 2007, the company was opened up to management having shareholdings and in 2012, we partnered with a BBBE company – Ba-Akhi Construction – which is a 100% black-owned company

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BUSINESS PROFILE

and they acquired 26% of our group.

“Today, we have the painting and renovation division, the construction division, the housing division and also a Plant and Equipment division. Directly employed by the company, we probably have around 300 people,” Maartens says.

BUILDING SUCCESS While Tri-Star has a long list of successful projects, completed with positive feedback from clients, one of the major successes of the last year has been the growth of the business in the aforementioned unpredictable climate. Then there’s the PPS headquarters in Centurion which achieved a Five Start Green Star Office v1 Design rating certification from the GBCSA. “The biggest success in the last 12 months is our growth,” says Maartens “we’ve almost doubled in size in that time. We have a big list of jobs that we’ve completed in the last year and the flagship project is probably Centurion Square which is the large PPS office building in Pretoria. It’s

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around seven levels high and is a green building and that is a major accomplishment.

“It took around 18 months and we’ve had 100% positive feedback; it’s been a major success in the local area – it’s a magnificent building. The architects have achieved awards for their work.”

Importantly, the company has also recognised that with strong growth comes the need for updates to technology and a careful approach to finance control and because of this has invested in relevant software to ensure quality.

“Because we’ve grown so much in the last few years and have growth forecasts for the next two to three years that show considerable growth, we’re moving from a medium to a large construction company and with that we’re focussing heavily on construction software, Candy and BuildSmart, and we’re focusing on developing our Quantity Surveyors and implementing a fully integrated commercial management system to

take care of every Cent that moves around our company,” says Maartens.

GREATEST ASSET = PEOPLE Tri-Star says that it ‘aspires to have happy stakeholders’, and 300 of these stakeholders – the company’s loyal workforce – are among Tri-Star’s most valuable assets. In order to keep its people happy, the company boasts an open and transparent hierarchy. Led by the Directorate, the company has deployed a structure where anyone in the business can contact management and build a clear communication channel to resolve issues and further their own development.

“Our culture and structure is that our directors and shareholders lead the teams. Most of the directors have been with the company for 10-15 years or more and they run all of the jobs,” explains Maartens. “The directors have teams that they have worked with for a long time and they develop their people; everyone from labourer to chargehand, foreman and

TRISTAR CONSTRUCTION

contracts manager.”

Clients and suppliers are also aware that the flat management structure makes for quick and easy communication and it’s something that Tri-Star actively pushes.

“It’s one of the reasons that we have success; our people stick with us. Ultimately, each of our directors develops their people in-house and they take pride in that. Development of people is essential and anyone from our company, including labour on site, can phone the MD. Our lines of hierarchy are open and transparent and that is a real contributor to success.”

In an industry that is almost 100% reliant on people, in a country where some skills can be difficult to come by, Tri-Star is proud of its reputation as an employer and a contributor.

“Our company is so much more than just chasing profits. We have 300 employees and their families who rely on the ongoing success of the business. We are proud of our family environment and we take pride in being able to support our people. We are also proud to be part of the South African economy and the development and construction of the country, not only in infrastructure but also in economic terms,” says Maartens.

CONSTRUCTING A SOLID FUTURE Moving forward, and building on its track record of quality, value and excellence, Tri-Star has its eyes on further growth. Having already secured a number of prestigious projects to keep the company busy over the next few months, Maartens explains that Tri-Star will remain on the lookout for opportunities.

“We are still tendering and we are hoping to pick up some more projects in the next few months.

“We have a number of highrise building projects on our books right now,” he says. “One of

them is a student accommodation building in Pretoria. We have the headquarters of PERI Formwork which is an interesting, complex job with warehousing, showrooms, hardstands etc. We also have a number of residential developments that we’re busy with, one being a big high-rise apartment block on a golf course in Johannesburg. We’re also looking at low cost housing which is trending at the moment in South Africa. We also have housing jobs starting soon in Cosmo City in Jo’burg and Featherwood in Pretoria.”

So the future looks extremely bright for this construction specialist that has come such a long way in the past 37 years. With the government pumping a reported R865.4 billion into infrastructure over the next three years and with a continued

drive to encourage FDI into South African infrastructure projects, there will undoubtedly be opportunities as the money filters through to the private sector.

Tri-Star is a business that takes a ‘view on tomorrow’ and likes to develop long-term relationships with clients, and thanks to this approach the company is known as formidable force in the construction industry.

This is without doubt a company to watch as we move through 2016 and beyond.

TRISTAR +27 12 687 1000 info@tri-star.co.za www.tri-star.co.za

SAVOY WE SUPPLY ALL BUILDING MATERIALS

580 Louis Botha Avenue, Savoy, Johannesburg Tel: (011) 440 9834/5 www.enterprise-africa.net / June 2016 / 81

BROLL FACILITIES MANAGEMENT

“Africa,

We Have You Covered” PRODUCTION: Karl Pietersen

The challenges of being a facility manager in 2016 are becoming more and more significant but industry leader, Broll (part of the CBRE network) has seen success across South Africa and on the continent. Director: Technical Chris Aslett explains more…

//

In 2015, South Africa’s leading commercial property services company, Broll, was lauded for its work and received Gold for Facilities Excellence in the PMR Golden Arrow Award. This followed on from winning Bronze in 2014 and Gold in 2013.

The company was also recognised for excellence at the Euromoney Real Estate Awards 2015 where it was named as the number one Advisors and Consultants in Ghana, Nigeria and South Africa. Broll Ghana scooped three awards; overall Advisors and Consultants, Advisors and Consultants for Agency/Letting and Advisors and

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Consultants for Research. Broll Nigeria was named overall Advisors and Consultants, Advisors and Consultants for Agency/Letting and Advisors and Consultants for Research while Broll South Africa was named overall for Advisors and Consultants and Advisors and Consultants for Research.

And in 2016, Broll’s success has continued, despite the tough economic conditions, and the business is now looking for growth in new industry sectors. Director: Technical, Chris Aslett tells Enterprise Africa that Broll is targeting the healthcare industry and also looking to bolster its portfolio in

the telecoms sector with a huge new customer.

“We are negotiating in SA and across our borders in Mozambique where we are looking at hospitals and that type of facility with regards to plans going forward and getting more involved with healthcare,” he says.

“We try and steer away from putting ourselves in a box as far as opportunities go. We’ll look at all sizes but our focus is private hospitals. State owned hospitals usually have in-house facilities management operations.

When we get involved with state owned facilities, we usually go in as a

BUSINESS PROFILE

consultant and they’ll ask us to form part of a task team or they’ll ask us for advice so our target facilities would be more in the private sector.

“The biggest focus at the moment, and for the next few months, will be the Vodafone tender.

“The first phase will be mainly focussed on South Africa with later stages focussing on Southern Africa.

The long-term goal is to service Vodafone industry across Africa with very much the same principle that we have with MTN but this will be a global arrangement and for part of the bigger CBRE picture,” he adds.

Working on the continent is something that Broll is familiar with and has done for many years. In South Africa, the company is headquartered in Johannesburg but the group has offices all over the Africa including operations in Angola, Cameroon, Ghana, Indian Ocean Islands, Ivory Coast, Kenya, Malawi, Mozambique, Namibia, Nigeria, Swaziland, Uganda and Zambia and provides real estate services in other African countries. Right now, the African

84 /June 2016 / ww www.en .entter erpr prise ise-afr -africa.net ica.net

continent forms a major part of the Broll strategy and Aslett says that work with a large retailer has focussed the company’s attention in Africa.

“I would definitely say that Africa is a huge focus, especially with the latest success that we’ve had with the Massmart portfolio where we are now appointed as the facilities management company for Massmart Africa, working across the whole of Africa, in all countries on the Massmart portfolio – that is a massive job.

“We do have a big focus on the African market currently. There are African countries like Ivory Coast, Ghana, Nigeria, Kenya, Rwanda, Uganda to mention just a few where there is positive growth and where opportunities exist to develop an established footprint quite quickly,” he says.

However, even with the company’s success on the continent and its longterm success in South Africa, Broll has had to face some unique challenges that have been heightened thanks to the sluggish economy.

UNIQUE CHALLENGES When the squeeze in the economy tightens thanks to fluctuating interest rates, depreciating currency and slowing demand for products and services, financial managers will sometimes tighten the belt and look at areas where they can save money.

“Unfortunately in our industry, the reality is that the first place that a CEO or COO looks to reduce expenditure is usually on the maintenance side; they try and push maintenance cycles and make it longer, repair work is put on the backburner, we are asked to perform miracles with regards to keeping machinery and equipment running for longer periods without huge expenditure so it’s a huge challenge and we do feel the pinch on the operational side,” admits Aslett.

Then there’s also the problem of smaller players being forced out of the market by the bleak economic climate. When people stop spending and the work dries up, small facilities management companies that are not set up to withstand economic pressure

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BUSINESS PROFILE

often fall out of the market, leaving their customers stuck. Aslett says that having smaller players enter the market for a short period of time and drop out when times get tough is harmful to the industry.

“My view, based on experience from various accounts that I’ve managed and been involved with over the last few years, is that it’s damaging to the facilities management industry,” he says. “The reason is that you get people that start up a company, they run for a few years and they land a few smaller opportunities that could

BROLL FACILITIES MANAGEMENT

have been developed into much larger portfolios but because of their lack of capacity they can’t do that. They then go under within three years and the legacy of that is that the industry does not know what they’re doing and those clients will very seldom return to the market and in a lot of cases the client decides to insource and do the job themselves. It’s hugely damaging and the result is very negative on the industry as a whole.”

A slow market place, where the economy isn’t thriving, also paves the way for smaller companies to install

There’s a big drive on the go with regards to utility management. There’s been a lot of effort put into saving energy and I believe that we are very close to bottling out on those savings as most people have already installed the low-energy saving initiatives such as efficient lighting, efficient usage regimes and all that goes with reducing energy usage. There is light at the end of the tunnel as Eskom has a plan in place and they predict that in the next two to three years, there’ll be enough energy so that there’ll be no load-shedding.

“For the last six months, we’ve had

employees in SA and around 1400 on the continent, Broll has managed to create a skilled and efficient workforce that offers quality service. Developing this base is an ongoing task and something which Broll takes very seriously.

very little power-outages so obviously something is going right but I hope that this doesn’t force our clients to lose focus on energy management possibilities,” he says.

Unfortunately, there is another big problem that has already impacted on a number of businesses in South Africa and that problem is water. The droughts have caused catastrophes and of course Broll is looking to help its clients where it can.

“We have a huge problem with regards to water. You cannot manufacture water and rainfall has considerably changed in the southern part of Africa. Uganda is currently going through a huge drought period, our central region is going through a massive drought season so water is becoming the next big crisis. The focus should be ‘how do we reserve, recover and re-use water that we have’ and that will be a focus for us with utilities management going forward,” the Director: Technical explains.

Of course, developing solutions to these problems and supporting clients who are themselves industry leaders means that you need to develop a quality workforce, and with around 400

employees.

“It’s actually a huge drive within the company and there’s huge support for development of that facility,” says Aslett.

“It’s an accredited training facility and it has a national training qualification framework rating so the people that attend our training courses receive a NQF rated certificate when they successfully complete the course. It’s not just a certificate of attendance like you might get with seminars and lectures, it’s actually NQF rated and taken very seriously. We’ve got 23 people currently on training through that school and they do their practical work in the Broll workplace.”

Going through the Academy is the perfect route into a facilities management career and according to Aslett, there are opportunities for young people who excel to move into senior positions.

“The whole idea of having this set-up is to make that a reality,” he says. “There are employees who have gone through the academy who work in junior management positions such as technical managers and facilities mangers.

//R35 billion

PEOPLE DEVELOPMENT The Broll Academy was established in 2002 with the specific aim of improving property skills and knowledge of Broll employees. The Academy offers skills development for existing staff and learnerships and internships for new

contracts valued at

ultra-aggressive pricing and again this is not a positive thing for the industry and its reputation.

“The economy has been an influence and in our part of the world it’s worsened by conditions with the weakening of the Rand against the Euro and the US Dollar. It makes the net effect of the shrinking industry even more vivid meaning that opportunities are fewer and further between and fiercely competitive. It opens up the tendency for companies to go ‘cut throat’ which is also not conducive for long-term strategies and long-term relationships,” Aslett explains.

SAVINGS WHERE POSSIBLE As Aslett mentions, CEOs and COOs quickly look to their facilities manager to make savings when economic activity slows. As well as saving on maintenance and repair work, there is also a demand to save on energy and this is not only to manage costs but also to help companies deal with issues such as load-shedding and black outs.

“We are continuously asked to look at areas for saving when it comes to energy usage and also utilities such as water.

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BUSINESS PROFILE

“There’s one other company that I know of that has a similar system but I don’t think they are NQF rated. There are a few private colleges which are affiliated with specific divisions, for example, our electrical engineering fraternity has their own training schools but they are training on the technical engineering side and not so much in our line of business which is facilities management and the management of property.”

The Academy takes people from varying different backgrounds, with different educational histories but Aslett explains that the most common entry point is through South Africa’s technical colleges.

“There’s a lot of ways into it but the most common way just now is through technical colleges. We find that people are sensitised at the technical college and then they come into our system and get earmarked for full-time employment,” he says.

//WE TAKE OUR MEMBERSHIP VERY SERIOUSLY. A LOT OF OUR EMPLOYEES AT MANAGEMENT AND JUNIOR MANAGEMENT LEVEL ARE ALSO MEMBERS OF SAFMA SO THERE’S A LOT OF BENEFIT THAT WE GET OUT OF THE ASSOCIATION AND THEY GET FROM US//

INDUSTRY BACKING The Broll Academy, and the wider activities of the company, are supported by the industry as creation of jobs and

88 / June 2016 / www.enterprise-africa.net

development of skilled people is only a good things for the sector. SAFMA (the South African Facilities Management Association) exists to support, represent and advance the cause and interests of the facilities management community on a sustainable and ever growing basis, and this organisation has for a long time supported Broll and vice-versa.

“We see the relationship as very important – so important that for the last eight years, we’ve been a platinum member which is the highest membership you can get from SAFMA. Our COO, Rowland Gurnell, is one of the Directors on the governing body of SAFMA. We take our membership very seriously. A lot of our employees at management and junior management

level are also members of SAFMA so there’s a lot of benefit that we get out of the association and they get from us,” says Aslett.

“In 2015, we sponsored the SAFMA conference that was held in Midrand.

We were one of the main sponsors and I think that shows our commitment to the organisation,” he adds.

The mission of SAFMA is to be a self-sustaining body recognised locally and internationally for its meaningful role in facilitating recognition of the South African facilities management community and Broll’s vision is to put clients’ needs first, solving their problems and identifying valuable opportunities to enhance their businesses so the two organisations are

BROLL FACILITIES MANAGEMENT

intertwined.

“SAFMA is the only registered organisation currently where we can get facilities managers registered and accredited. There’s a validation that takes place and the facilities managers submit thesis’s to SAFMA and they then get a ranking and that is nationally recognised – it’s not just a piece of paper, you can use it for further development and employment.

It definitely benefits us, without any doubt.

“We are also affiliated with HEFMA (Higher Education Facilities Management Association of Southern Africa) and we are active member of this association which includes all of the universities,” says Aslett.

GROWING IN 2016 AND BEYOND Following on from the success of 2015, Broll is aiming to continue on the success path throughout 2016.

At the end of last year, the company announced that it had secured new property management contracts valued over R35 billion and buildings measuring over 1.7 million square metres. Group CEO, Malcolm Horne said: “We are thrilled by these new contracts – our landlord service businesses have

shown growth across all regions on the continent in the last six months.

Contracts secured will be taken up in the business over a phased period up to, and including April 2016. Our Africa business accounts for 23.3% of value and 12% of GLA.” And that positivity is backed up

by Aslett who says that the spread of work is good and there are huge opportunities for further growth with new and existing customers.

“In our experience, the growth is a balance between commercial and retail. For us, at the moment we have quite a few commercial banks that we are engaging with regarding long-term relationships but we also have the Massmart portfolio and in-between the whole mobile telephone industry.

“There’s a lot of growth in the portfolio. There’s the Vodafone portfolio and then there’s our retail group with the Massmart take on of the whole of Africa.

“We’ve entered into tender processes with a number of potential customers but they are currently in the open market and we haven’t had any definite response yet. We constantly partake in open tenders, recently we’ve submitted for some of the biggest

banks in Africa and we’re constantly looking to expand our brand within the facilities management industry in the southern part of Africa but also in Africa as a whole,” he says.

Then there’s markets outside of Africa – other SA companies have realised the potential of global expansion, especially in the Middle East and Eastern Europe. Could Broll be the next SA business to become truly worldwide?

“There’s a lot of projects that CBRE is busy with and for some of those, the southern part of Africa is used as a springboard. Mauritius and Madagascar have projects underway and I do firmly believe that we can expand globally,” he concludes

BROLL FACILITIES MANAGEMENT +27 11 441 4000 info@broll.com www.broll.com

www.enterprise-africa.net / June 2016 / 89

Timber Giants PRODUCTION Montigny is the largest privately-owned, integrated timber company in Swaziland. The company owns over 55,000 ha of timber and sells to markets around the world, steadfastly committed to sustainable, profitable and ethical business practices, that benefit the local economy and add value to the Swazi Nation.

Montigny is a proudly Swazi­ // owned and operated timber company, and stands today as the leading integrated timber grower in Southern Africa. lt was founded in 1997 by entrepreneur Neal Rijkenberg, since which time Montigny has grown from a small family business into the largest private timber owner-operator in Southern Africa. lt is positioned to service approximately 40% of the regional wet-off-saw timber market, and boasts diverse timber-trading

interests in South Africa, Swaziland, Mozambique, Namibia, Angola, Zambia and Japan. Andrew Le Roux, Executive Director, sums up Montigny's unique approach to maximising value in everything it does. "What makes us stand out from our competitors primarily is the way in which we add value to every part of the tree. We are able to extract and utilise up to 95% of the tree's value because of the breadth of our markets:' Montigny oversees more than

www.enterprise-africa.net / lssue Î?Îż.48 / 91

BUSINESS PROFILE

85,000 ha of land, out of which some 55,000 ha are under active timber management. These plantations extend all the way from Nhlangano in southern Swaziland, to the Usutu region in the North. The company has created in excess of 5,500 jobs during its lifetime, which makes it one of the biggest employers in Swaziland, particularly as it also engages with an extensive network of local subcontractors. Its wide range of eight sawmills and plants consists of four sawmills at Bhunya and Nhlangano, one Essential Oil plant, one chipping plant, one chipboard plant and a rented sawmill at Bulembu. Fire management is a primary concern of Montigny’s, essential to its continued successful operation, and as such its staff complement is bolstered by a

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large workforce of trained rangers, dedicated to safety and security both in Montigny plantations and the surrounding communities.

The diverse range of products which Montigny exports to markets throughout Southern Africa weighs in at a colossal 250,000 cubes of sawn timber per annum. Through its innovative approach to product development and supply, it focuses on extracting the maximum value from the timber at its disposal. Its product range has expanded accordingly over time, and now takes in everything from standard lumber to finished products, which are provided to customers across the planking industry, pallet users, the mining industry, charcoal consumers, paper manufacturers, furniture makers and

construction companies.

This has all been achieved through Montigny’s industryrenowned competitive pricing and an unwavering commitment to excellence, both in the quality of its products and service it delivers. Going about its business in such a fashion has seen Montigny establish long lasting relationships across the board, with suppliers, service providers and clients around the world. On the environmental sustainability side, Montigny also commits significant resources to developing sustainable forestry practices as well as supporting local enterprise and giving generously to social responsibility projects. It remains deeply committed to sustainable forestry, and as such is careful to protect the biodiversity

MONTIGNY INVESTMENTS

protect plantation areas. To further underline its commitment to social responsibility, Montigny’s founder also co-founded Bulembu, a former mining town which has been transformed into a dwelling for more than 350 orphaned and vulnerable children. On a wider scale, with more than 3000 residential units existing within the bounds of Montigny Usutu plantations and villages, covering an area that includes five constituencies and 38 chieftaincies, it is charged with actively engaging with these communities through a variety of projects, from school support initiatives, study scholarships, health clinics through to sports events.

Montigny’s Usutu Forest Complex represents one of the largest, continuous man-made forestry estates in the world, boasting extensive

and well-developed infrastructure alongside the shortest average stumpto-mill distance in the region. The purchase of Usutu Forest Products Company from SAPPI Limited was concluded by Montigny in 2014. At the time a representative for Sappi spoke of its significance moving forward: “This transaction is a positive for the country because it brings total ownership of this important asset back to the hands of Swazi business people; a first since the inception of the company.”

MONTIGNY +268 2452 5000 info@montigny.co.sz www.montigny.co.sz

and those delicate ecological areas found within its forests. This is also evidenced in its quest to gain as much value as possible from felled timber, with the remaining waste then used to generate energy.

In a similar vein, Montigny also takes seriously its responsibility toward fire management, and associated awareness initiatives.

This is of special significance given its location, as every year, and in particular during Swaziland’s dry winter months, fire poses a significant risk to its people and property, and Montigny strives to promote public awareness through education initiatives and targeted media campaigns. Furthermore, its fire ranger programme trains rangers to proactively patrol and

www.enterprise-africa.net / June 2016 / 93

NAMPAK

Glass Business Resilient for Nampak PRODUCTION: David Napier

Africa’s largest diversified packaging manufacturer by volume and revenue, Nampak, has enjoyed a good start to 2016 and is expecting to grow further throughout the rest of the year and beyond.

//

As we come to the halfway point in 2016, it seems that Nampak has positioned itself strongly for the run in towards the end of the year, with investments planned in the final two quarters and financial results that indicate strength despite the less-than-impressive growth outlook for the region.

As we know, Nampak is Africa’s largest and most well-recognised packaging company; the company itself will tell you that it is ‘Africa’s largest diversified packaging manufacturer by volume and revenue’. With over 6600 employees across 12 African countries and the UK, Nampak produces worldclass metal, glass and rigid plastics packaging products that are used

94 / June 2016 / www.enterprise-africa.net

by a wide-range of customers, including some of the largest FMCG companies, to help protect and market products while also considering the environment.

Moving forward, the company will look to use a strong existing platform to catapult it toward further success. The two-pronged strategy of Nampak during the current economic slowdown is made up of an increased push on the African continent and unlocking further value from its base businesses.

“Africa is the story for us,” said Nampak CEO André De Ruyter when speaking to Bloomberg at the end of last year. “People talk about Latin America, they talk about India, China or other emerging markets,

BUSINESS PROFILE

//MANAGEMENT REMAINS FOCUSED ON DELIVERING IMPROVED PERFORMANCE AND UNLOCKING OPERATING LEVERAGE FROM OUR RECENT CAPITAL INVESTMENTS// but we think the opportunity that we’ve got in Africa is so big and this is what we know we can do well.”

In November, Nampak announced that it was ‘poised for growth in 2016’, with impressive financial statistics including group revenue from continuing operations up 13%, net profit from continuing operations up 2%, group trading profit from continuing operations up 10% and

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revenue and trading profit from the rest of Africa up 43%.

“Management remains focused on delivering improved performance and unlocking operating leverage from our recent capital investments.

Prudent capital allocation, further cost reductions and operational improvement initiatives are expected to benefit the bottom line during the 2016 financial year,” said De Ruyter.

While glass has been something of an up and down business for Nampak over the past few years, it seems that the sub-sector will be important for the business going forward. In March, the company said that it expected to double the number of wine bottles it manufactures for big-name South African wine producers and exporters such as Nederberg.

A trade agreement between SA and the European Union (EU) alongside a weak SA Rand makes South Africa an attractive destination for European importers and with the country’s wine makers producing some of the world’s best Chenin Blanc and Pinotage, these bottles are

NAMPAK

//THE GROUP’S OPERATIONS IN THE REST OF AFRICA ARE EXPECTED TO CONTINUE GENERATING GROWTH IN REVENUE AND PROFIT SUPPORTED BY EXPECTED GROWTH IN DEMAND// in demand.

Currently, Nampak’s glass factory in Germiston produces around 20,000 tonnes but this is expected to increase to 40,000 before the end of the year.

The trade agreement allows for approximately 110 million litres of wine to be exported, duty-free, from the SADC region to the EU. “We are grateful for the intervention from government to boost bottled wine exports,” De Ruyter told Business Day. “This creates an opportunity for us to grow our business.”

Today, Nampak packages one third of all glass bottle products in South Africa and glass forms part of the wider strategy. “We can sell every bottle that we can make in the glass business, and in the food can business we are benefiting from the export drive of South African food manufacturers who are benefiting from the weak rand to build their businesses into the rest of Africa,” De Ruyter told Business Day. In March, the company announced that it was confident for the rest of the year and expects to achieve continued growth.

“It is expected that continued volume growth in beverage cans, gains from improved performance at Glass and improved efficiencies from business improvement initiatives at DivFood will contribute positively to earnings. Glass has turned around and is expected to deliver profits in line with the previously communicated guidance.

The group’s operations in the rest of Africa are expected to continue

generating growth in revenue and profit supported by expected growth in demand,” Nampak stated in its operation update or the period 1 October 2015 to 29 February 2016.

Because of the success of its glass business, Nampak is looking to grow in regions such as Nigerian and Ethiopia. Angola was also a strong target market and Nampak had stated its intention to open a new beverage can line and glass furnace in the country but following a slump in the currency price against the Dollar and other economic conditions, Nampak has taken a decision to delay that investment for the time being, stating that “the company is carefully evaluating further

capital projects in the region. The glass opportunities in Nigeria and Ethiopia are of significant future value to Nampak and they continue to be evaluated and considered with prudence.”

Overall, Nampak stands in good stead for the future and 2017 will likely be another exciting year for this African success story.

Importantly, it’s not just on the continent where success will be gleaned; the company also expects to perform well at home in South Africa.

De Ruyter told Business Day: “Even though we expect continued growth in profitability from our African operations we expect a resurgence from our South African operations.”

NAMPAK +27 11 719 6300 info@nampak.com www.nampak.com

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DU ROI LABORATORY

YieLding Better Resuιts PRODUCTION Founded in 1994 in Letsitele in Linnpopo province, Du Roi Laboratory specialises in the production and distribution of elite selections and disease free tissue culture plants, with a particular focus on the banana and sugarcane industries.

Tissue culture involves the // rapid multiplication of plant selections, offering the benefit of converting or expanding plantations q uickly and efficiently and providing superior selections of plants which are free from disease.

Du Roi Laboratory is equipped with a range of facilities to help it achieve such feats, including fully automated weaning facilities and onsite nurseries to harden plants for local markets. Du Roi's principal focus is on sugarcane and banana plants, of which it is positioned to supply between six and eight million tonnes each year. The

tissue culture means that not only is this disease-free, but it also allows elite selections which produce higher yields and which in turn grow more vigorously than their traditional counterparts.

Du Roi's was the first tissue culture laboratory in Africa to be 150 accredited for banana production, which is just one reason for its current position at the forefront of the market. "We have a great track record;' the company says. 'Ίt's a proven quality product, which is why people keep coming back to us.

We have our own unique selections which have been evaluated by Dr

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BUSINESS PROFILE

John Robinson, a world-renowned banana specialist and horticulturalist, and those selections have proven themselves to have a higher yield than the traditional equivalents. We have committed to investing in procedures that no other laboratory in the world follows. For example, each plant that is initiated into our lab is virus indexed, so we can guarantee that it is completely virus-free.”

All of Du Roi Laboratory’s banana plants are sourced from the foundation block that was established and evaluated alongside the expertise of Dr Robinson. These plants are all stringently recorded by number to permit complete traceability, all the way from foundation block through

to grower, with varieties selected for their vigorous growth, high commercial yield potential, plant stability and uniformity. In addition, each meristem, which is the tissue found in zones of the plant where growth can take place, is virus indexed for all known banana viruses before multiplication.

It has established a reputation for true to type, high quality plants with low off-type percentages, which is maintained through selection and meticulous tissue culture techniques.

Du Roi supplies its banana plant varieties in three principal forms. The in-vitro variant, firstly, provides an efficient and cost effective method of exporting plants, while its in-vivo plants, of five centimetres, are suitable for export and, in contrast to the in-vivo products, can be easily grown by local growers who do not have weaning facilities, although a nursery is still needed in order to harden off plants for field planting. The final plant of the trio are those which are

//WE HAVE COMMITTED TO INVESTING IN PROCEDURES THAT NO OTHER LABORATORY IN THE WORLD FOLLOWS//

100 / June 2016 / www.enterprise-africa.net

DU ROI LABORATORY

//WITH TISSUE CULTURE WE ARE ABLE TO PROVIDE FIELD-READY PLANTS WHICH CAN BE SOWN AS SOON AS THEY LAND// field-ready. These plants measure 20 centimetres, and are ready to be planted into the field immediately.

Their field-ready state makes them suitable only for transport by road, and not for air freight.

The second principal arm of its business is Du Roi’s involvement in the sugarcane market. Among the many benefits of the Laboratory’s NovaCane Sugarcane is its ability to supply plans that are both pest and disease free, without requiring the often costly variable heat treatment. True-to-type elite selections of high quality plants are used exclusively, which leads to

vastly increased sugarcane production.

Du Roi’s methods also signify that new varieties can be multiplied and released very quickly, and thus high quality material is available throughout the year. The smaller size of these plantlets, meanwhile, makes their transportation exponentially easier and more cost effective, while the plantlets, ready for field planting upon receipt by the farm, have been proven to give an augmented 1:15 seed multiplication.

Du Roi’s sugarcane arm also influences the development of bioenergy technology, as it supplies the plants for the 10,000 hectare

Makeni sugarcane estate, a project seeking to produce some 85,000m3 of ethanol per annum. “If we just look at the energy crisis currently being seen in South Africa, we are certainly looking to support any projects geared toward using bioenergy to produce ethanol,” the company explains. “With tissue culture we are able to provide field-ready plants, to be sown as soon as they land. We can certify too that these are virus and disease free, guaranteeing the increased yields.”

DU ROI LABORATORIES +27 15 345 1217 duroilab@mweb.co.za www.duroilab.co.za

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WE PRIDE OURSELVES ON OUR ABILITY TO WORK WITH OUR CLIENTS TO DEVELOP THEIR PLASTIC PRODUCTS TO THEIR FULL POTENTIAL - FROM INITIAL CONCEPTS THROUGH TO FINAL PRODUCTION, WE OFFER VITAL EXPERIENCE.

www.ventureplastics.co.za (011) 824 1420

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EXHIBITION CALENDAR

KEY UPCOMING EVENTS ACROSS THE COUNTRY Our regular update to help you keep track of important events and exhibitions taking place across the spectrum of industry sectors.

//TABLE OF ALL EVENTS: AFRICA OIL & POWER The Westin Grand, Cape Town 06-07 June WEST AFRICOM Radisson Blu Hotel, Dakar 08-09 June POWER & ENERGY - KENYA The Dome, Nairobi 10-12 June NIGERIA OIL & GAS Abuja International Conference Centre 13-16 June AFRICA’S BIG SEVEN Gallagher Convention Centre, Johannesburg 19-21 June FUTURE RESILIENCE AFRICA Cape Town ICC 21-22 June AFRICA PORTS AND HARBOUR CONGRESS Sandton Convention Centre 28-29 June

Ò

AFRICA HEALTH 08 - 10 JUNE 2016 Africa Health is the continent’s largest healthcare exhibition and is a leading platform for the industry to meet, learn and do business.

The exhibition takes place from 8 -10 June 2016 at the Gallagher Centre, Johannesburg, and will attract more than 7,000 healthcare professionals and host 500 of the world’s leading healthcare suppliers, manufacturers and service providers.

SOURCE AFRICA - 4TH AFRICAN TEXTILE, APPAREL AND FOOTWEAR TRADE EVENT 07 - 09 JUNE 2016 Source Africa will take place for the 4th time in Cape Town this year. It is now the most important annual pan-African textile, clothing and footwear trade event on the international calendar.

It brings together manufacturers, buyers, suppliers and services providers in one major integrated event, enabling International and African buyers to view and explore an extensive array of products and services from Africa.

AFRICA’S BIG SEVEN Ò 19 – 21 JUNE 2016 Africa’s Big Seven is the continent’s largest food and beverage industry trade expo. The seven specialised sectors cover everything from fresh produce and ingredients to manufacturing technologies, processing and packaging equipment, retail ready products, hospitality, retail and international catering and much more. Trade buyers traditionally attend from over 50 countries. Africa’s Big Seven is endorsed by the South African National Halaal Authority.

102 / June 2016 / www.enterprise-africa.net

AFRICARAIL Sandton Convention Centre 28-29 June

BORDIC

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Supplying High Quality POLYESTER SHRINK FILMS into the Southern & East African Label Markets.

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www.bordic.co.za T +27 11 880 5200 sales@bordic.co.za 57 Eastwood Road • Dunkeld